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The standard model of rational risky decision-making

Falahati, Kazem - In: Journal of risk and financial management : JRFM 14 (2021) 4, pp. 1-22

Expected utility theory (EUT) is currently the standard framework which formally defines rational decision-making under …

Persistent link: https://www.econbiz.de/10012520657

Indifference, indecisiveness, experimentation and stochastic choice

Ok, Efe A.; Tserenjigmid, Gerelt - In: Theoretical economics : TE ; an open access journal in … 17 (2022) 2, pp. 651-686

Among the reasons behind the choice behavior of an individual taking a stochastic form are her potential indifference or indecisiveness between certain alternatives, and/or her willingness to experiment in the sense of occasionally deviating from choosing a best alternative in order to give a...

Persistent link: https://www.econbiz.de/10013273770

Random ambiguity

Lu, Jay - In: Theoretical economics : TE ; an open access journal in … 16 (2021) 2, pp. 539-570

We introduce a model of random ambiguity aversion. Choice is stochastic due to unobserved shocks to both information and ambiguity aversion. This is modeled as a random set of beliefs in the maxmin expected utility model of Gilboa and Schmeidler (1989). We characterize the model and show that...

Persistent link: https://www.econbiz.de/10012587418

A lab test on the decision not to decide

Schade, Christian D.; Snir, Avichai - In: Business research 13 (2020) 3, pp. 1253-1291

that participants' styles of decision-making and risk aversion as well as the interaction of those can assist in predicting …

Persistent link: https://www.econbiz.de/10012422376

Revealing a preference for mixtures : an experimental study of risk

Feldman, Paul; Rehbeck, John - In: Quantitative economics : QE ; journal of the … 13 (2022) 2, pp. 761-786

Using a revealed preference approach, we conduct an experiment where subjects make choices from linear convex budgets in the domain of risk. We find that many individuals prefer mixtures of lotteries in ways that systematically rule out expected utility behavior. We explore the extent to which...

Persistent link: https://www.econbiz.de/10013382047

Robust scoring rules

Tsakas, Elias - In: Theoretical economics : TE ; an open access journal in … 15 (2020) 3, pp. 955-987

Is it possible to guarantee that the mere exposure of a subject to a belief elicitation task will not affect the very same beliefs that we are trying to elicit? In this paper, we introduce mechanisms that make it simultaneously strictly dominant for the subject (a) not to acquire any information...

Persistent link: https://www.econbiz.de/10012308719

Behavioral decision making in normative and descriptive views : a critical review of literature

Chai, Junyi; Weng, Zhiquan; Liu, Wenbin - In: Journal of risk and financial management : JRFM 14 (2021) 10, pp. 1-14

Recent studies on decision analytics frequently refer to the topic of behavioral decision making (BDM), which focuses … on behavioral components of decision analytics. This paper provides a critical review of literature for re-examining the … relations between BDM and classical decision theories in both normative and descriptive reviews. We attempt to capture several …

Persistent link: https://www.econbiz.de/10012792414

A new application for the goal programming : the target decision rule for uncertain problems

Gaspars-Wieloch, Helena - In: Journal of risk and financial management : JRFM 13 (2020) 11/280, pp. 1-14

The goal programming (GP) is a well-known approach applied to multi-criteria decision making (M-DM). It has been used … analogies between M-DM under certainty and scenario-based one-criterion decision making under uncertainty (1-DMU) have not been … hybrids for 1-DMU are formulated. They differ from each other in terms of the type of the decision maker considered (pessimist …

Persistent link: https://www.econbiz.de/10012388744

Strategic information selection

Preker, Jurek; Karos, Dominik - 2024

Before choosing her action to match the state of the world, an agent observes a stream of messages generated by some unknown binary signal. The agent can either learn the underlying signal for free and update her belief accordingly or ignore the observed message and keep her prior belief. After...

Persistent link: https://www.econbiz.de/10014511689

Estimating case-based learning

Guilfoos, Todd; Pape, Andreas D. - In: Games 11 (2020) 3/38, pp. 1-25

We propose a framework in order to econometrically estimate case-based learning and apply it to empirical data from twelve 2 × 2 mixed strategy equilibria experiments. Case-based learning allows agents to explicitly incorporate information available to the experimental subjects in a simple,...

Persistent link: https://www.econbiz.de/10012432206