Journal article

FRAMING OF DECISIONS UNDER AMBIGUITY

Y KASHIMA, P MAHER

JOURNAL OF BEHAVIORAL DECISION MAKING | JOHN WILEY & SONS LTD | Published : 1995

Abstract

This paper reports three experiments that illustrate framing of decision problems due to Ellsberg (1961) in which probabilities are ambiguous. Although the standard Ellsberg problems often induce violations of Savage's sure‐thing principle, framing of the equivalent problems in a sequential format reduces these violations. Nevertheless, this has an ironic consequence of introducing another inconsistency in the decision makers' choices: An inconsistency between the standard and sequential formulations of the Ellsberg problems. Copyright © 1995 John Wiley & Sons, Ltd.