Experimental Design Details
We use a mixed design relying on both within-subject variation across treatments and between subject variation in social identity. Every treatment is assigned to each individual. The three treatments are:
Predation-Gains Treatment: The source of uncertainty in this treatment is the number of goats in a herd killed by leopards in a year. The ambiguous events are created using data on annual goat predation in 2021-2025 collected from the sample population during an earlier survey. Following Baillon et al. (2018) six events are constructed. An event is defined as: "A randomly selected herder lost x goats due to predation by leopards in a randomly selected year between 2021-25." The six events are 0-1 goats (Event: E1), 2 goats (Event: E2), 3 or more (Event E3), 0-2 goats (Event: E12), 2 or more goats (Event E23) and 0-1 or 3 or more goats (Event E31).
For each event, the subject's matching probability is determined using a multiple price list method. This involves having the subject make a series of binary choices between an ambiguous event and increasingly likelier risky events. The level of risk at which the subject switches from choosing the ambiguous to the risky event, is used to calculate the revealed range of the matching probability for that ambiguous event. If the predicted event, either ambiguous or risky, comes to pass the subject will win 300 INR, given that the event is selected for incentivization.
Ellsberg-Gains Treatment: This treatment is a modified Ellsberg Urns game adapted from Lotito et al. (2024). The source of uncertainty is the distribution of candies colored red, blue and yellow in a bag containing 9 candies. An event is defined as: "A bag contains 3 red candies and 6 yellow and blue candies. The exact mix of yellow and blue candies is unknown. The color of a randomly drawn candy will be x". The six events are red (Event: E1), yellow (Event: E2), blue (Event E3), red or yellow (Event: E12), yellow or blue (Event E23) and red or blue (Event E31). A correct prediction wins the subject 300 INR if an event in this game is selected for incentivization.
Predation-Loss Treatment: This is identical to Predation-Gains treatment except that this is framed as entailing a loss of 300 INR if the predicted event comes to pass. However, this game is not incentivized and the losses are hypothetical.
Each subject faces all three of these games; first the Predation-Gains and Ellsberg-Gains games then the Predation-Loss game. It was explained to players that the Predation-Loss game would not be incentivized and was treated as separate from the first two games. To account for potential order effects, the order of the Predation-Gains and Ellsberg-Gains games were randomized between subjects. Within each game, the order in which a subject faced the six events was also randomized. At the end of the game and a short survey, one of the events of Predation-Gains or the Ellsberg-Gains game was randomly selected for incentivization.
The Primary hypotheses are:
H01) Rabaris are less ambiguity-averse than Non-Rabaris in Predation-Gains as compared to the Artificial source (Ellsberg-Gains).
b_pred_rab - b_ells_rab < b_pred_nonrab - b_ells_nonrab
H02) Rabaris are more ambiguity-insensitive than Non-Rabaris in Predation-Gains as compared to the Artificial source (Ellsberg-Gains).
a_pred_rab - a_ells_rab > a_pred_nonrab - a_ells_nonrab
The Secondary hypotheses are:
H02) Rabaris are less ambiguity averse than Non-Rabaris in Predation-Gains.
b_pred_rab < b_pred_nonrab
H03) Rabaris are less ambiguity averse than Non-Rabaris in Predation-Loss.
b_pred_loss_rab < b_pred_loss_nonrab
H04) Rabaris are similarly ambiguity averse to Non-Rabaris in the Artificial source (Ellsberg-Gains).
H05) Rabaris are more ambiguity insensitive than Non-Rabaris in Predation-Gains.
a_pred_rab > a_pred_nonrab
H06) Rabaris are more ambiguity insensitive than Non-Rabaris in Predation-Loss.
a_pred_loss_rab > a_pred_loss_nonrab
H07) Rabaris are Non-Rabaris are similarly ambiguity insensitive in the Artificial Source (Ellsberg-Gains).
References:
Baillon, A., Huang, Z., Selim, A., & Wakker, P. P. (2018). Measuring Ambiguity Attitudes for All (Natural) Events. Econometrica, 86(5), 1839–1858. https://doi.org/10.3982/ECTA14370
Lotito, G., Maffioletti, A., & Santoni, M. (2024). Testing source influence on ambiguity reaction: Preference and insensitivity. Journal of Risk and Uncertainty, 69(3), 349–411. https://doi.org/10.1007/s11166-024-09444-4