Home | Events | The Resolution of Uncertainty in the Value and Probability Domains
Seminar

The Resolution of Uncertainty in the Value and Probability Domains

  • Series
    CREED Seminars
  • Speaker(s)
    M. Kathleen Ngangoué (University of California, Los Angeles, United States)
  • Field
    Behavioral Economics
  • Location
    University of Amsterdam, Roeterseilandcampus, room E1.17
    Amsterdam
  • Date and time

    March 27, 2025
    16:00 - 17:15

Abstract

We compare preferences for temporal resolution when uncertainty is resolved over a probability rather than a value. In various theoretical frameworks–e.g., Kreps and Porteus (1978)–, preferences over gradual versus one-shot resolution do not depend on whether values or probabilities define the main object of uncertainty. In our experiment, however, most subjects resolved uncertain values gradually but uncertain probabilities all at once–both in the gain and loss frames. To explain this discrepancy we propose an explanation based on what we call “process utility. Joint paper with Eungik Lee and Andrew Schotter.