Comparing behavior under risk and under ambiguity in a lifecycle experiment

Enrica Carbone, Gerardo Infante

Research output: Contribution to journalArticle

3 Citations (Scopus)
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Abstract

Experiments on intertemporal consumption typically show that people have difficulties in optimally solving such problems. Previous studies have focused on contexts in which agents are faced with risky future incomes and have to plan over long horizons. We present an experiment comparing decision making under certainty, risk, and ambiguity, over a shorter lifecycle. Results show that behavior in the ambiguity treatment is markedly different than in the risk condition and it is characterized by a significant pattern of under-consumption.
Original languageEnglish
Pages (from-to)313-322
Number of pages10
JournalTheory and Decision
Volume77
Issue number3
DOIs
Publication statusPublished - Oct 2014

Keywords

  • Intertemporal consumer choice
  • Lifecycle
  • Risk
  • Ambiguity
  • Laboratory experiments

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