The present study tries to validate the dual mechanisms of
ambiguity effect in decisional
process. Dual mechanisms operate in a streamlining way when a
decision maker is uncertain
of the occurrence probability of certain events. The ambiguity
thus incurred modulates the
estimation of event probability (P-mechanism or Streamline 1)
and that of event consequence
(U-mechanism or Streamline 2). The present study then follows a
substantial revision of
Lattimore et al''s (1992) model to separate and accommodate the
effects of ''degree of
perceived ambiguity '' and ''ambiguity attitude'', which are expressed as and
respectively. The revised Liou model (1997) was then applied to
simulate the behavior of P-
and U-mechanisms under various combinations of and values.
Based on the proposed
streamlining mechanisms, two experiments were conducted to test
four hypotheses derived
from the revised model: (1) existence of the ''degree of
perceived ambiguity'' effect; (2)
existence of the ''ambiguity attitude'' effect; (3) existence of
the streamlining of dual
mechanisms; and (4) existence of the interaction effect between
''degree of perceived
ambiguity'' and ''ambiguity attitude'' variables. The experimental
results confirm that the first
three hypotheses are reliably supported in both experiments,
while the fourth hypothesis is
only partially supported in Experiment 1. The demonstrations
thus clearly complement the
single-mechanism (i. e., P or U-mechanism, but not both in a
streamlining way) explanations
in the literature.