The Impact Of Portfolio Investments On Ambiguity Attitudes Under The Uncertain Circumstances

Decision-making in uncertainty is the classic topic of traditional economics and behavioral economics.After uncertainty being subdivided into circumstances with risks and non-risk uncertain circumstances,namely the ambiguity circumstances,the latter gradually become a new research field.Because in such circumstances,the attitude of the decision maker often engender behaviors that are different from what classical theories would predict,which greatly attracts the attention of the behavioral finance researchers.This essay focuses on the change of the attitude of the decision makers under non-risk uncertain circumstances.The factors credited for the change are the quantity of the events that should be decided and the information that is available.With the approach of experimental economics and the SOEU research framework,this essay's experiment designing is based on the events happened in the real world rather than the artificial environment of the lab.And then we can further offer one possible research perspective for various irrational psychological factors under the savage stock shock 2015 in China.This essay emphasize on analyzing two questions:First,when the risks systematically reduce,how the ambiguity-aversion attitude of the decision makers would change.Second,how the sensitiveness to the ambiguity of events that decision makers are confronted with would change when we consider whether the information is thoroughly given or not.From the theoretic aspects,the existing research results have offered a measurement of utility when the decision maker is confronted with both risks and ambiguities and a measurement of ambiguity attitude when the events that happened in the real world are taken into consideration.With the help of the existing research results,we explore more influencing factors.In order to understand the change of ambiguity attitude,the single decision-making event and combined natural events are set as the first comparison dimension,none-information giving condition and real information giving condition are set as the second comparison dimension.Then we explore how these two influencing factors effect decision makers' ambiguity attitudes through experimental methods.From the empirical aspects,based on the existing research results,we recruited undergraduates of Zhejiang Gongshang University to take part in our experiments,and we gathered the experimental data and establish a simultaneous equations to statistically and econometrically analyze the impaction of the two above-mentioned influencing factors.The results show that:first,when the risks systematically reduce,the decision makers under uncertain circumstances will shift from slight ambiguity-aversion attitude to slight ambiguity-chasing attitude.Second,when real and valid information is given,the decision makers enhance their cognations to the ambiguous circumstances,which reduce the sensitivity to ambiguities.On the basis of theoretical and empirical analysis,we suggest that the government should pay more attention to the psychological factors in financial markets,enhance the financial market to reduce systematic risks by diversifying investment channels and raise the percentage of the institutional investors,better the information disclosure mechanism,regulate the behavior of the authoritative medias,so the financial market can greatly get rid of irrational behaviors,The effect of sheep-flock and the consequent stampede effect,and run in a healthy and steady environment.