College of Management
69 Vipawadee Rangsit Rd.
Institutional Affiliation: Mahidol University
NBER Working Papers and Publications
|February 2019||Ambiguity Attitudes about Investments: Evidence from the Field|
with Roy Kouwenberg, Olivia S. Mitchell, Kim Peijnenberg: w25561
Using an incentivized survey and a representative sample of investors, we elicit ambiguity attitudes toward a familiar company stock, a local stock index, a foreign stock index, and a crypto currency. We separately estimate ambiguity aversion (ambiguity preferences) and perceived ambiguity levels (perceptions about ambiguity), while controlling for unknown likelihood beliefs. We show that ambiguity aversion is highly correlated across different assets and can be summarized by a single underlying factor. By contrast, individuals’ perceived ambiguity levels differ depending on the type of asset and cannot be summarized by a single underlying factor. Perceived ambiguity is mitigated by financial literacy and education, while the preference component is correlated with risk aversion. Perceived...