Ellsberg 1961: Text, Context, Influence

In 1961 Daniel Ellsberg published an article titled 'Risk, Ambiguity, and the Savage Axioms' in the Quarterly Journal of Economics, which became a seminal contribution to the theory of decision-making under uncertainty. This paper analyzes Ellsberg’s 1961 classic, situates it within the context of decision-making theory in the 1950s and early 1960s and within the development of Ellsberg’s ideas, and provides an overview of the experimental and theoretical literature to which it gave rise.