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
“Slim-As-Luxury” Effect: Product Shape as Input to Luxury Perceptions
Ji Jill Xiong, National University of Singapore, Singapore
Yu Ding, Columbia University, USA
Gita Venkataramani Johar, Columbia University, USA
Featured
I’m Just Trying to Help: How Volunteers’ Social Media Posts Alter Support for Charitable Organizations
Michelle Daniels, Arizona State University, USA
Kirk Kristofferson, Ivey Business School
Andrea Morales, Arizona State University, USA
Featured
N6. Not Myself: The Impact of Secret-Keeping on Consumer Choice Regret
DONGJIN HE, Hong Kong Polytechic University
Yuwei Jiang, Hong Kong Polytechic University