Many studies document failures of expected utility’s key assumption, the independence axiom. Here, we show that …

This article reviews recent developments in revealed preference theory. It discusses the testable implications of … theories of choice that are germane to specific economic environments. The focus is on expected utility in risky environments …, subjected expected utility and maxmin expected utility in the presence of uncertainty, and exponentially discounted utility for …

formation in choice under risk. Three novel experiments are presented that demonstrate the ability of the new theory to explain … utility theory, as well as for the “new paradoxes” that falsify cumulative prospect theory. The model is characterized by a …In confidence theory, the decision maker relies on statistical regularities from the economic environment to adopt …