violations of coalescing (i.e., configural weight theory) instead of violations of compound independence (i.e., rank …Common ratio effects should be ruled out if subjects' preferences satisfy compound independence, reduction of compound … lotteries, and coalescing. In other words, at least one of these axioms should be violated in order to generate a common ratio …

Experimental research on decision making under risk has until now always employed choice data in order to evaluate the …

Experimental research on decision making under risk has until now always employed choice data in order to evaluate the …

This paper tests Birnbaum's (2004) theory that the constant consequence paradoxes of Allais are due to violations of … coalescing, the assumption that when two branches lead to the same consequence, they can be combined by adding their … probabilities. Rank dependent utility and cumulative prospect theory imply that the Allais paradoxes are due to violations of …

models. We perform a repeated choice experiment and fit an error model that allows us to discriminate between true violations …

consequences. However, the pandemic was not the only reason why supply chain risk management has become more crucial than ever … before. In the last decade, the occurrence of previously merely theoretical risks has emphasised the importance of risk … management in supply chains. This has increased interest in risk assessment and management, COVID-19 and other disaster impact …

analyzed within the framework of statistical decision theory, in which prior probability distributions of classes of cases are …Many decision problems in various fields of application can be characterized as diagnostic problems trying to assess … decision problems: the optimal stopping of investigations and the optimal sequence of investigating a given set of criteria …

According to the harmonic sequence paradox (Blavatskyy 2006), an expected utility decision maker's willingness … implausible for finite payoffs levels, expected utility theory - as well as its standard generalizations such as cumulative … prospect theory - are apparently unable to explain a finite willingness-to-pay. The present paper presents first an …

experiment where the decision maker draws twice with replacement in the typical Ellsberg two-color urns, but with a different … utility all predict unequivocally that risk-averse decision makers (DMs) will avoid the 50 - 50 urn that exhibits the highest … risk conceivable, while risk-seeking DMs do the opposite. However, we observe a substantial number of violations in the …

The Allais critique of expected utility theory (EUT) has led to the development of theories of choice under risk that … labora-tory experiments designed to test independence, our experiment systematically tests the entire set of axioms …