New Study Reveals Ambiguity Attitudes Depend on Source of Uncertainty
The study explored decision-making under uncertainty and found that people tend to avoid ambiguity but also seek it in some cases. Ambiguity attitudes depend on the type of uncertainty, not the outcomes. Natural uncertainties lead to more rational decisions compared to artificial scenarios. Different families of weighting functions were tested, with the Goldstein-Einhorn family performing best for ambiguity.