Risk, ambiguity, and the Savage axioms . Imagine an urn containing 30 red balls and 60 balls that can be either black or yellow, in unknown proportion. A ball is drawn at random from the urn. Ellsberg describes two choice situations, each containing two alternatives, summarized in Table 1. Risk, ambiguity, and the savage axioms .
Uncertainty is caused by the lack of evidence to support either belief or disbelief.
Let us suppose that you confront two urns containing red and black balls, from one of which a ball will be drawn at random. Risk, ambiguity, and the Savage axioms . Uncertainty is caused by the lack of evidence to support either belief or disbelief. Let us suppose that you confront two urns containing red and black balls, from one of which a ball will be drawn at random. Risk, ambiguity, and the Savage axioms .