We present a new theory of decision under uncertainty: third-generation prospect theory (PT3). This retains the predictive power of previous versions of prospect theory, but extends that theory by allowing reference points to be uncertain while decision weights are specified in a rank-dependent...

<Para ID="Par1">We present two experiments designed to study the role of forgone opportunities in decision making under risk. In the first one, we face individuals with a dynamic environment in which their decisions, together with chance, determine their future options. We find that previously faced...</para>

<Para ID="Par1">The government often provides relief against large risks, such as disasters. A simple, general rationale for this role of government is considered here that applies even when private contracting to share risks is not subject to market imperfections. Specifically, the optimal private sharing of...</para>

<Para ID="Par1">Animals deal with predictable and unpredictable events on a daily basis. Yet our knowledge of the cognitive processes involved in decisions remains limited. We tested capuchins, macaques and orang-utans in a food-gambling task to investigate whether or not individuals estimate the chances of...</para>

<Para ID="Par1">Understanding country differences in temporal discounting is critical for extending incentive-based environmental policies successfully from developed countries to developing countries. We examined differences between Chinese and Americans in discounting of future financial and environmental...</para>

<Para ID="Par1">We investigate the accuracy of facility-reported data both within and across emissions and off-site transfer inventories of lead (Pb) in time. We build on recent work using Benford’s Law to detect statistical anomalies in large data sets. Our application exploits a regulatory experiment to...</para>

<Para ID="Par1">Standard economic theory treats contractual risk the same as risk experienced in a lottery, but the transfer of risk from principal to agent may change the perception of risk. Previous experimental studies have shown that positive and negative framing affects both gambles and incentive...</para>

<Para ID="Par1">We propose a broad framework for individual choice under risk which can accommodate many stochastic formulations of various deterministic theories. Using this framework to guide an experimental design, we show that most individuals’ departures from the independence axiom cannot be explained by...</para>