Given adolescents' propensity to engage in risky activities, experimentally elicited risk has received much attention in adolescence. Very few studies have looked at other dimensions of decision-making under uncertainty in this special population. In this study, we attempted to close this gap by...

In this paper, I investigate the betting behavior of a decision-maker who can influence the likelihood of the events upon which she is betting. In decision theory, this is best known as a situation of moral hazard. Focusing on a particularly simple case, I sketch the first systematic analysis of...

In this paper we develop a retirement model under the expected utility stochastic control framework to find optimal decisions with respect to the consumption, risky asset allocation, access to annuities, reverse mortgage and the option to scale housing. The model is solved numerically using...

Cumulative Prospect Theory (CPT) must embrace probability weighting functions with a discontinuity at probability zero to pass the two most prominent litmus tests for descriptive decision theories under risk: the Allais paradox and the St. Petersburg paradox. We prove in a nonparametric...

Maximising expected value is the classic doctrine in choice theory under empirical uncertainty, and a prominent proposal in the emerging literature on normative uncertainty, i.e., uncertainty about the standard of evaluation. But how should Expectationalism be stated in general, when we can face...

We evaluate the hypothesis of temporal stability in risk preferences using two recent data sets from longitudinal lab experiments. Both experiments included a combination of decision tasks that allows one to identify a full set of structural parameters characterizing risk preferences under...

I provide a novel simplified approach to Savage's theory of subjective expected utility. Such an approach is based on abstract integral representation theorems in the space of measurable functions. The advantage of such an approach is that these results can be used to easily obtain variations on...