We examine whether the way individuals randomize between options captures their decision confidence. In two experiments … levels to probabilistic confidence. This relationship is robust to two exogenous manipulations of decision confidence, where …

and DRD4) are significant determinants of risk taking in investment decisions. We find that the 5-HTTLPR s/s allele … carriers take 28% less risk than those carrying the s/l or l/l alleles of the gene. DRD4 7-repeat allele carriers take 25% more … risk than individuals without the 7-repeat allele. These findings contribute to the emerging literature on the genetic …

(1952) and substitutes the fourfold pattern of risk attitudes introduced by Cumulative Prospect Theory. The results … 1992 study "Advances in Prospect Theory”, which describes the Cumulative version of their Prospect Theory from 1979. It was … assumed that, apart from the operations made during the initial stage of problem resolution, which Prospect Theory defines as …

), risk aversion in an investment task (Dreber and Hoffman, 2007), and the average profitability of high-frequency traders in …

Using a laboratory experiment we investigate how skew in uences choices under risk. We find that subjects make …

dependant on the context of the problem under consideration. The former assumption leads to the design of Prospect Theory, the … crucial arguments for the latter approach and provides strong arguments for rejecting the Prospect Theory paradigm. …

particular, we found that optimism and anxiety were a liability in unfavorable markets, leading to unreasonable levels of risk …. Impulsivity was a liability in both favorable and unfavorable markets, leading to high risk on unfavorable markets, and low risk … in favorable markets. Openness to experience was an asset in unfavorable markets, leading to adjusted risk taking …