Two recently published studies argue that conventional parameterizations of cumulative prospect theory (CPT) fail to resolve the St. Petersburg Paradox. Yet as a descriptive theory CPT is not intended to account for the local representativeness effect, which is known to induce 'alternation bias'...

We report an experiment in which subjects are not indifferent between real-money lotteries implemented with randomization devices that are equivalent under the Reduction Axiom. Instead choice behavior is consistent with subjective distortion of conditional probability, and this persists in...

Two recently published studies argue that conventional parameterizations of cumulative prospect theory (CPT) fail to resolve the St. Petersburg Paradox. Yet as a descriptive theory CPT is not intended to account for the local representativeness effect, which is known to induce 'alternation bias'...

Certain classes of system-level risk depend partly on decentralized lay decision making. For instance, an organization's network security risk depends partly on its employees' responses to phishing attacks. On a larger scale, the risk within a financial system depends partly on households'...

The well-known result that capital structure is irrelevant for firm value follows from a set of assumptions conducive to theoretical analysis. In this note we explore the implications of relaxing one of these assumptions: the independence of cash flows from capital structure. Unlike debt and...

In this paper we attempt to recover an integrated conception of the Precautionary Principle (PP). The alpha=0.05$ inferential-threshold convention widely employed in science is ill-suited to the requirements of policy decision making because it is fixed and unresponsive to the cost trade-offs...

In this paper we attempt to recover an integrated conception of the Precautionary Principle (PP). The alpha=0.05$ inferential-threshold convention widely employed in science is ill-suited to the requirements of policy decision making because it is fixed and unresponsive to the cost trade-offs...

Air transport Greenhouse Gas (GHG) emissions estimates differ greatly, depending on the calculation method employed. Among the IPCC, ICAO, DEFRA, and BrighterPlanet calculation methods, the largest estimate may be up to 4.5 times larger than the smallest. Such heterogeneity -- and ambiguity over...