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Adapting ”When Choices Are Mistakes” Framework to Study Ambiguity Aversion

Arab, Michel LU (2024) EXTM10 20241
Department of Economics
Abstract
Recently, the paper ”When Choices Are Mistakes” by Nielsen, Kirby, and John Rehbeck (2022) introduced a novel method to test axiomatic theories of choice under risk. This innovative approach opened new avenues for exploring decision- making processes. Ambiguity aversion, a distinct concept where probabilities of outcomes are unknown, is fundamental in understanding economic and financial decisions. This project aims to apply the concept and methodology of Nielsen et al.’s work to the study of ambiguity aversion, providing fresh insights into this critical area.
Popular Abstract
We are often required to make decisions under uncertainty. From simple decisions like which route to
take, to more complicated ones as in financial investments. In my study we are interested in how people
make decisions under ambiguity situations and how they reconcile the situation when they discover that
their choices are not optimal. This concept is important in economic decision making, because it shows
how uncertainty affects people’s choices in different economic situations as investment decisions and
consumer behaviour.
Please use this url to cite or link to this publication:
author
Arab, Michel LU
supervisor
organization
course
EXTM10 20241
year
type
H2 - Master's Degree (Two Years)
subject
language
English
id
9170969
date added to LUP
2024-11-22 09:05:07
date last changed
2024-11-22 09:05:07
@misc{9170969,
  abstract     = {{Recently, the paper ”When Choices Are Mistakes” by Nielsen, Kirby, and John Rehbeck (2022) introduced a novel method to test axiomatic theories of choice under risk. This innovative approach opened new avenues for exploring decision- making processes. Ambiguity aversion, a distinct concept where probabilities of outcomes are unknown, is fundamental in understanding economic and financial decisions. This project aims to apply the concept and methodology of Nielsen et al.’s work to the study of ambiguity aversion, providing fresh insights into this critical area.}},
  author       = {{Arab, Michel}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Adapting ”When Choices Are Mistakes” Framework to Study Ambiguity Aversion}},
  year         = {{2024}},
}