Ambiguity aversion overstated in risk assessments, impacting economic decision-making.
The article introduces a simple tool to measure how people feel about taking risks and dealing with uncertainty. By using this tool, researchers found that people are more averse to uncertainty than previously thought when compared to risk. This shows that how we feel about taking risks and dealing with uncertainty are closely linked. The study also found that whether people are offered real or hypothetical rewards doesn't change how they feel about uncertainty. This means that asking a simple question can give us insights into how people feel about uncertainty in different situations.