There is an extensive literature on decision making under uncertainty. Unfortunately, up to date there are no valid decision principles. Experimental evidence has repeatedly shown that widely used principle of maximization of expected utility has serious shortcomings. Utility function and...

Probabilistic risk beliefs are key drivers of economic and health decisions, but people are not always certain about their beliefs. We study these "imprecise probabilities", also known as ambiguous beliefs. We show that imprecision is measurable separately from the levels of risk beliefs. People...