optimistically biased, we propose an alternative model of risky choice, affective decision-making, where decision weights -- which we … label affective or perceived risk -- are endogenized. Affective decision making (ADM) is a strategic model of choice under … demonstrate this finding for affective decision making in insurance markets. We prove that ADM potential games are refutable, by …

We characterize, in the framework for variational preferences, the affective decision making model of choice under risk …-theoretic foundation for affective decision making, (ii) offers an axiomatic explanation for ambiguity-seeking in the Ellsberg Paradox and …

on game-theoretic models of affective decision making. This methodology is illustrated in the context of a hypothetical …This paper proposes nonparametric statistical procedures for analyzing discrete choice models of affective decision … making. We make two contributions to the literature on behavioral economics. Namely, we propose a procedure for eliciting the …