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Updated: Sep 30, 2026

Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods
Published on: September 19, 2012
[The effect of available choices on ambiguity aversion: an examination of different types of ambiguity]
Shinya Masuda1, Takayuki Sakagami, Sumire Hirota
1Department of Educational Psychology, Faculty of Education, Ibaraki University, Bunkyo, Mito 310-8512.
Abstract:
Ellsberg's two-color problem, known as an example of ambiguity aversion, has generated a great deal of interest among many researchers. However, an unsettled question remains regarding the conditions that lead to heightened or diminished ambiguity aversion. We conducted a series of experiments, which required participants to choose between a clear and vague bet. Results showed that participants did not always prefer the clear bet, and the ratios of those who indicated ambiguity aversion varied depending on the types of ambiguity. Furthermore, ambiguity aversion consistently decreased when participants were allowed to choose the ambiguity task they would perform. These results were interpreted in terms of the pattern of second order probability distributions and illusion of control.
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