?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F22452%2F&rft.title=Testing+axiomatizations+of+ambiguity+aversion&rft.creator=Chen%2C+Daniel+L.&rft.creator=Schonger%2C+Martin&rft.subject=B-+ECONOMIE+ET+FINANCE&rft.description=The+study+of+the+normative+and+positive+theory+of+choice+under+uncertainty+has+made+major+advances+through+thought+experiments+often+referred+to+as+paradoxes%3A+the+St.+Petersburg+paradox%2C+the+Allais+paradox%2C+the+Ellsberg+paradox%2C+and+the+Rabin+paradox.+Machina+proposes+a+new+thought+experiment+which+posits+a+choice+between+two+acts+that+have+three+outcomes.+As+in+the+Ellsberg+paradox+there+are+three+events%2C+but+while+the+Ellsberg+paradox+has+two+(monetary)+outcomes+in+Machina+there+are+three.+Machina+shows+that+four+prominent+theories+of+ambiguity+aversion+predict+indifference+between+the+acts.+Introspection%2C+however%2C+suggests+that+many+people+might+very+well+strictly+prefer+one+act+over+the+other.+This+paper+makes+four+contributions%3A+first%2C+to+our+knowledge%2C+it+is+the+first+to+experimentally+implement+the+Machina+thought+experiment.+Second%2C+we+employ+a+novel+method+to+simultaneously+elicit+the+certainty+equivalent+of+an+embedded+lottery.+Third%2C+our+results%E2%80%94across+three+experiments%E2%80%94indicate+non-indifference%2C+which+rejects+earlier+theories+of+ambiguity+aversion%2C+but+is+consistent+with+a+newer+one%2C+which+we+apply+to+explain+our+results.+Fourth%2C+we+show+that+independence+is+a+sufficient+condition+for+indifference+in+the+Machina+paradox%2C+and+thereby+explains+why+so+many+models+predict+indifference.&rft.publisher=TSE+Working+Paper&rft.date=2016-10&rft.type=Monograph&rft.type=NonPeerReviewed&rft.format=text&rft.language=en&rft.identifier=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F22452%2F1%2FTesting_Axiomatizations_of_Ambiguity_Aversion.pdf&rft.identifier=++Chen%2C+Daniel+L.+%3Chttps%3A%2F%2Fwww.idref.fr%2F241586631%3E+and+Schonger%2C+Martin++(2016)+Testing+axiomatizations+of+ambiguity+aversion.++TSE+Working+Paper%2C+n.+16-717+++++&rft.relation=http%3A%2F%2Ftse-fr.eu%2Fpub%2F31117&rft.language=en