Ambiguity and Conflict Aversion When Uncertainty Is in the Outcomes

We argue that the way ambiguity has been operationalized throughout the literature on ambiguity effects has an important limitation, insofar as ambiguity in outcomes has been neglected. We report two studies where judges do encounter ambiguity in the sampled outcomes, and find evidence that ambiguity aversion is not less than when judges are given a range of outcomes without reference to ambiguous outcomes themselves. This result holds...