Nevada’s boom and bust Las Vegas entrepreneur Andrew Donner does not gamble at the casinos. Instead, he invests in real estate in the city’s downtown. Interviewed on Marketplace, Donner said: “Well, you know casinos, you somewhat know the odds, and I think there’s something beauti ful about being somewhat ignorant of your odds out in the business market place. You keep working and hopefully you win more than you lose.”

(a) Is Donner ambiguity averse or ambiguity prone?

(b) Are his attitudes consistent with the competence hypothesis or not?