Sources of Uncertainty

The aim of this thesis is to understand how (1) knowledge and (2) epistemic uncertainty interact with ambiguity attitudes. Conducting a survey using the setting of the Dutch Football League Eredivisie provides insight in preferences between ambiguous and risky bets for 59 respondents. Using the source method to quantify the ambiguity index and likelihood sensitivity index for each respondent shows clear positive interaction between knowledge and ambiguity seeking attitudes and positive interaction between epistemic uncertainty and ambiguity seeking attitudes. Our sample provides no evidence for interaction between knowledge and likelihood sensitivity or epistemic uncertainty and likelihood sensitivity. However, this interaction has not been studied before using the source method and thus is the first of his kind.