Resolving the Ellsberg Paradox by Assuming that People Evaluate Repetitive Sampling

Ellsberg (1961) designed a decision experiment where most people
violated the axioms of rational choice. He asked people to bet on
the outcome of certain random events with known and with unknown
probabilities. They usually preferred to bet on events with known
probabilities. It is shown that this behavior is reasonable and in
accordance with the axioms of rational decision making if it is
assumed that people consider bets on events that are repeatedly
sampled instead of just sampled once.