Several papers, adopting an axiomatic approach to study decision making under ambiguity
aversion, have produced conflicting predictions about how decision makers would behave
in simple dynamic urn problems. We explore the concepts of ambiguity aversion and
dynamic consistency, with examples of dynamic games against nature. Basically, a
malevolent nature puts balls into the urn, and a fair nature draws them out. Depending on
the game, various choices that seem inconsistent with static notions of ambiguity aversion or …