Ellsberg paradox

English

Etymology

Popularized by Daniel Ellsberg in his 1961 paper “Risk, Ambiguity, and the Savage Axioms”, although a version of it was noted considerably earlier by John Maynard Keynes.

Proper noun

the Ellsberg paradox

1. A paradox of choice in which people's decisions produce inconsistencies with subjective expected utility theory.

Alternative forms

• Ellsberg's paradox

See also

• ambiguity aversion