Perceptions of Epistemic Vs. Aleatory Uncertainty Affect Stock Investment
Investors’ perceptions of uncertainty vary along two independent dimensions: (i) epistemic (knowable) uncertainty; and (ii) aleatory (random) uncertainty. The more investors perceive market uncertainty to be epistemic (aleatory), the more sensitive they are to their own level of ignorance (risk preference), and they manage this uncertainty by seeking advice (diversifying).
Citation:
Daniel Walters, Gulden Ulkumen, Carsten Erner, David Tannebaum, and Craig Fox (2018) ,"Perceptions of Epistemic Vs. Aleatory Uncertainty Affect Stock Investment", in NA - Advances in Consumer Research Volume 46, eds. Andrew Gershoff, Robert Kozinets, and Tiffany White, Duluth, MN : Association for Consumer Research, Pages: 833-834.
Authors
Daniel Walters, INSEAD, France
Gulden Ulkumen, University of Southern California, USA
Carsten Erner, FS Card
David Tannebaum, University of Utah, USA
Craig Fox, University of California Los Angeles, USA
Volume
NA - Advances in Consumer Research Volume 46 | 2018
Share Proceeding
Featured papers
See MoreFeatured
Names Are the Mirrors of the Soul: The Role of Possessive Brand Names in Brand Evaluations
Marina Puzakova, Lehigh University
Mansur Khamitov, Nanyang Technological University, Singapore
Featured
C7. The Visually Simple = Healthy Intuition and Its Effects on Food Choices
Yan Wang, Renmin University of China
Jing Jiang, Renmin University of China
Featured
P12. Disclosure of Project Risk in Crowdfunding
Jooyoung Park, Peking University
KEONGTAE KIM, Chinese University of Hong Kong, China