Loss aversion, risk aversion, and the probability weighting function (PWF) are three central concepts in explaining … decisionmaking under risk. I examine interlinkages between these concepts in a model of decisionmaking that allows for loss averse … commonly observed shapes of PWF and to risk aversion. In particular, I establish a connection between loss aversion and both …

skewed risks. We show that salience theory of choice under risk can explain this preference for positive skewness, because … choices under risk not only depend on the absolute skewness of the available options, but also on how skewed these options …

attitudes towards ambiguity and compound risk which suggests that compound risk aversion may provide a psychological foundation … for ambiguity aversion. However, compound risk aversion and ambiguity aversion may also be independent psychological …’s ability to reduce compound to simple risks, and analyzing how this affects their compound risk and ambiguity attitudes in …

We investigate whether violations of canonical axioms of choice under risk are mistakes or a manifestation of true …

degree of pessimism of the representative agent is the mean of the individual ones weighted by their index of absolute risk …

Although risk aversion has been used in economic models for over 275 years, the past few decades have shown how higher … order risk attitudes are also quite important. A behavioral approach to defining such risk attitudes was developed by … lattices can be extended in order to develop a better understanding of higher order risk attitudes. …

While many puzzles in static choices under risk can be explained by a preference for positive and an aversion toward …

pattern of risk attitudes described by Kahneman and Tversky. In addition, we document a systematic effect of stake sizes on … the magnitude and sign of the relative risk premium, holding fixed both the probability that a lottery pays off and the … in which all departures from risk-neutral bidding are attributed to an optimal adaptation of bidding behaviour to the …

individuals are found to be more risk averse, in agreement with common findings. Unlike previous studies that ascribed gender … differences in risk attitudes solely to differences in the degree utility curvature, however, our results show that this finding …