THE IDEA

Choose the urn before you draw.

Ellsberg used urn choices to study ambiguity: a decision maker may treat unknown probabilities differently from known ones.

Inside this model

The known urn is 50% red. For the unknown urn, a red share is drawn once per session uniformly from [50−width/2, 50+width/2] percent; its value stays hidden until you play. Each urn pays 10 on red, 0 otherwise. The chart shows payoff under every possible unknown composition, not a claim about your preferences.

Out in the world

A practical use

Compare a contract with known failure odds with one whose probability cannot be estimated confidently from available data.

WHERE IT BREAKS

A useful lens. Not a universal law.

  • The random composition is a teaching device. Ellsberg's point concerns unknown beliefs and preference patterns, not a known uniform distribution over urn compositions.

Associated thinkers

Further reading

Explore the original research or the teaching reference behind this experiment.

Daniel Ellsberg — Risk, Ambiguity, and the Savage Axioms ↗