Social and Decision Sciences
Carnegie Mellon University
Porter Hall 319C
500 Forbes Ave.
Pittsburgh, PA 15213
Institutional Affiliation: Carnegie Mellon University
Information about this author at RePEc
NBER Working Papers and Publications
|June 2019||Inaccurate Statistical Discrimination|
with J. Aislinn Bohren, Kareem Haggag, Devin G. Pope: w25935
Discrimination has been widely studied in economics and other disciplines. In addition to identifying evidence of discrimination, economists often categorize the source of discrimination as either taste-based or statistical. Categorizing discrimination in this way can be valuable for policy design and welfare analysis. We argue that a further categorization is important and needed. Specifically, in many situations economic agents may have inaccurate beliefs about the expected productivity or performance of a social group. This motivates our proposed distinction between accurate (based on correct beliefs) and inaccurate (based on incorrect beliefs) statistical discrimination. We do a thorough review of the discrimination literature and argue that this distinction is rarely discussed. Using ...
|February 2015||Estimating Individual Ambiguity Aversion: A Simple Approach|
with Uri Gneezy, John List: w20982
We introduce a simple, easy to implement instrument for jointly eliciting risk and ambiguity attitudes. Using this instrument, we structurally estimate a two-parameter model of preferences. Our findings indicate that ambiguity aversion is significantly overstated when risk neutrality is assumed. This highlights the interplay between risk and ambiguity attitudes as well as the importance of joint estimation. In addition, over our stakes levels we find no difference in the estimated parameters when incentives are real or hypothetical, raising the possibility that a simple hypothetical question can provide insights into an individuals preferences over ambiguity in such economic environments.