Lotto lotteries — Decision making under uncertainty when payoffs are unknown

• Published in: Journal of behavioral and experimental economics Vol. 114; p. 102310
• Main Author: Schröder, David
• Format: Journal Article
• Language: English
• Published: Elsevier Inc 01.02.2025
• Subjects: Ambiguity aversion; Decision making; Lotteries; Risk aversion; Subjective expected utility; Uncertainty; Risk aversion; Ambiguity aversion; Uncertainty; Decision making; Subjective expected utility; C91; Lotteries; D81

This paper analyses decision making under uncertainty when payoffs are unknown, similar to a Lotto lottery. In a Lotto lottery, the probability of winning a prize is known, but the size of the prize is unknown. This paper proposes a theoretical framework to model preferences over Lotto lotteries as...