Question
Which of the following experiments would most cleanly allow you to provide evidence that ambiguity aversion occurs? If an experiment requires people be randomly assigned
Which of the following experiments would most cleanly allow you to provide evidence that ambiguity aversion occurs?
If an experiment requires people be randomly assigned to two groups, A describes what task/choice you've given to group A, and similarly for B.
The Special Coin refers to a special weighted coin is introduced that flips heads with an unknown probability. However, if a Special Coin is flipped *after another coin*, it has a 75% chance of showing the opposite answer of the first flip. So if you flip two Special Coins, and the first flip is H, there's a 75% chance the second flip is T.
Select one:
a. Choose between winning $10 if a regular coin flips heads, or winning $10 if two Special coins flip HT
b. A: Choose between winning $10 if a regular coin flips heads, or winning $10 if the Special Coin flips heads.
B: Choose between winning $10 if flipping a Special Coin and then a regular coin gives HT (since the Special Coin went first, its special 75% thing doesn't matter), or winning $10 if flipping a Special Coin twice gives HT.
c. A: Choose between winning $10 if a regular coin flips heads, or winning $10 if the Special Coin flips heads.
B: Choose between winning $10 if the first two flips of a regular coin are HT, or winning $10 if the first two flips of the Special Coin are HT.
d. A: Choose between winning $10 if a regular coin flips heads, or winning $10 if the Special Coin flips heads.
B: Choose between winning $10 if you flip two Special Coins and then a regular coin and get HTH, or winning $10 if you flip three Special Coins and get HTH.
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