We examine whether the way individuals randomize between options captures their decision confidence. In two experiments in which subjects faced pairs of options (a lottery and a varying sure payment), we allowed subjects to choose randomization probabilities according to which they would receive...

In standard models of ambiguity, the evaluation of an ambiguous asset, as of a risky asset, is considered as an independent process. In this process only information directly pertaining to the ambiguous asset is used. These models face significant challenges from the finding that ambiguity...

Abstract Popular models for decision making under ambiguity assume that people use not one but multiple priors. This paper is a first attempt to experimentally elicit multiple priors. In an ambiguous scenario with two underlying states we measure a subject’s single prior, her other potential...

Abstract We develop a new approach to directly and strictly distinguish indecisiveness from indifference. In our approach experimental subjects face a list of pairs of options. Besides the standard choice of choosing one option out of the pair (the binary choice), we also allow experimental...

We develop a new approach to directly and strictly distinguish indecisiveness from indifference, and study the prevalence and welfare implications of indecisiveness. In our approach experimental subjects face a list of pairs of options. Besides the standard choice of choosing one option out of...

We propose a model for individuals who have incomplete preferences and attempt to complete them. We show that two empirical puzzles ‑ the willingness-to-pay and willingness-to-ask (WTP-WTA) gap as well as the present bias ‑ arise naturally in the process of completing incomplete preferences....

We examine whether the way individuals randomize between options captures their decision confidence. In two experiments in which subjects face pairs of options (a lottery and a varying sure payment), we allow subjects to choose randomization probabilities according to which they would receive...

Information on decision confidence provides important insights into decision-making. In place of self-reported confidence statements in earlier studies, this study examines an incentivized approach to elicit quantitative decision confidence experimentally and theoretically. This approach allows...

We propose a model for individuals who have incomplete preferences and attempt to complete them. We show that two empirical puzzles ‑ the willingness-to-pay and willingness-to-ask (WTP-WTA) gap as well as the present bias ‑ arise naturally in the process of completing incomplete preferences....