Erik Wengström

Director of Doctoral studies, Department of Economics, Professor

The Virtual Bingo Blower : An opensource tool to generate ambiguity and risk in experiments

Author

Ola Andersson
Geoffrey Castillo
Erik Wengström

Summary, in English

We propose the Virtual Bingo Blower (VBB) as a way to generate
credible risk and ambiguity in computerized experiments. Using a
physics engine—a computer simulation of a physical system—the VBB
simulates a conventional bingo blower. Different aspects of the VBB,
such as the number of balls, their color, and their speed, can be easily
modified. In an online experiment, we measure ambiguity attitudes and
vary the source of ambiguity, using either the VBB or natural events.
We find that the VBB and natural events result in a similar degree of
ambiguity aversion. Further, we find that, by manipulating the number
of balls, the VBB can be used to manipulate the perceived level of
ambiguity.

Department/s