Ambiguous correlation

Larry G. Epstein, Yoram Halevy

Research output: Contribution to journalArticlepeer-review

28 Scopus citations


Many decisions are made in environments where outcomes are determined by the realization of multiple random events. A decision maker may be uncertain how these events are related. We identify and experimentally substantiate behaviour that intuitively reflects a lack of confidence in their joint distribution. Our findings suggest a dimension of ambiguity which is different from that in the classical distinction between risk and “Knightian uncertainty”.

Original languageAmerican English
Pages (from-to)668-693
Number of pages26
JournalReview of Economic Studies
Issue number2
StatePublished - 1 Mar 2019
Externally publishedYes

Bibliographical note

Publisher Copyright:
© The Author(s) 2018. Published by Oxford University Press on behalf of The Review of Economic Studies Limited.


  • Ambiguity
  • Confidence
  • Correlation neglect
  • Ellsberg Paradox
  • Preference elicitation


Dive into the research topics of 'Ambiguous correlation'. Together they form a unique fingerprint.

Cite this