What Price Ambiguity? or the Role of Ambiguity in Decision-Making

INTRODUCTION IN A recent article Daniel Ellsberg discusses ambiguity as a variable in the decision-making process.2 Three fundamental issues are discussed: What is ambiguity? What role does it play in decision-making? What role should it play in decision-making? The present study is focused on the first two of these issues and seeks to supplement the contributions of Ellsberg by adding experimental evidence and by suggesting a more easily measurable concept of ambiguity.