Gülden Ülkümen
Investor Behavior Under Epistemic vs. Aleatory Uncertainty
"In this talk Profesor Ülkümen argues that distinct investment strategies are driven by beliefs concerning the fundamental nature of market uncertainty. Investors who view stock market uncertainty as higher in epistemicness (knowability) are more likely to reduce uncertainty by seeking guidance from experts and are more responsive to available information. In contrast, investors who view stock market uncertainty as higher in aleatoriness (randomness) are more likely to reduce uncertainty through diversification."
