Uncertainty Aversion, Multi Utility Representations and State Independence of Utility

Author(s):  
Brian Hill
Keyword(s):  
2021 ◽  
pp. 014616722110609
Author(s):  
Luisa Liekefett ◽  
Oliver Christ ◽  
Julia C. Becker

Research suggests that conspiracy beliefs are adopted because they promise to reduce anxiety, uncertainty, and threat. However, little research has investigated whether conspiracy beliefs actually fulfill these promises. We conducted two longitudinal studies ( NStudy 1 = 405, NStudy 2 = 1,012) to examine how conspiracy beliefs result from, and in turn influence, anxiety, uncertainty aversion, and existential threat. Random intercept cross-lagged panel analyses indicate that people who were, on average, more anxious, uncertainty averse, and existentially threatened held stronger conspiracy beliefs. Increases in conspiracy beliefs were either unrelated to changes in anxiety, uncertainty aversion, and existential threat (Study 2), or even predicted increases in these variables (Study 1). In both studies, increases in conspiracy beliefs predicted subsequent increases in conspiracy beliefs, suggesting a self-reinforcing circle. We conclude that conspiracy beliefs likely do not have beneficial consequences, but may even reinforce the negative experience of anxiety, uncertainty aversion, and existential threat.


2019 ◽  
Vol 127 (3) ◽  
pp. 1118-1155 ◽  
Author(s):  
David L. Dicks ◽  
Paolo Fulghieri

2017 ◽  
Vol 63 (3) ◽  
pp. 749-765 ◽  
Author(s):  
Loïc Berger ◽  
Johannes Emmerling ◽  
Massimo Tavoni

2020 ◽  
Vol 36 ◽  
pp. 101354
Author(s):  
XiaoPing Li ◽  
Bin Tong ◽  
ChunYang Zhou

2012 ◽  
Vol 220 ◽  
pp. R29-R35 ◽  
Author(s):  
Robert Inklaar ◽  
Juan Fernández de Guevara ◽  
Joaquín Maudos

Financial crises, and in particular those of the past few years, have severe consequences for the affected economies. In this paper we analyse the impact of financial development and European financial integration on growth and we find no reversal of the growth benefits of financial development and integration in recent years. This highlights the economic cost of regulatory changes that would reverse European financial integration. We also find that, following a financial crisis, investment declines more in countries with a greater degree of uncertainty aversion, which can be informative for evaluating post-crisis economic performance.


2015 ◽  
Vol 32 (2) ◽  
pp. 231-248 ◽  
Author(s):  
Richard Bradley

Abstract:What value should we put on our chances of obtaining a good? This paper argues that, contrary to the widely accepted theory of von Neumann and Morgenstern, the value of a chance of some good G may be a non-linear function of the value of G. In particular, chances may have diminishing marginal utility, a property that is termed chance uncertainty aversion. The hypothesis that agents are averse to uncertainy about chances explains a pattern of preferences often observed in the Ellsberg paradox. While these preferences have typically been taken to refute Bayesian decision theory, it is shown that chance risk aversion is perfectly compatible with it.


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