Expected Utility Theory -- Alternative Descriptive Models -- A Positivistic Test of EU Theory -- An Experimental Study of Insurance Decisons -- Statistical Knowledge and Gambling Decisions -- Risk Taking and Problem Context in the Domain of Losses -- Epilogue.

This chapter surveys the contributions of laboratory experiments to labor economics. We begin with a discussion of methodological issues: when (and why) is a lab experiment the best approach; how do laboratory experiments compare to field experiments; and what are the main design issues? We then...