dspeyer comments on Knightian Uncertainty and Ambiguity Aversion: Motivation - LessWrong

20 Post author: So8res 21 July 2014 08:32PM

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Comment author: dspeyer 22 July 2014 06:50:30PM 2 points [-]

Note that ambiguity aversion becomes risk aversion with repetition. Suppose the tennis players are going to play a set of five matches and you must place all five bets before seeing any match. The expected values are still same, but the payoff pdf curves are quite different.