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A model of reference-dependent belief updating

Maier, Johannes K.; König, Clemens - 2016

are information seeking otherwise. Because belief updating depends on the decision problem in which new information is …

Persistent link: https://www.econbiz.de/10011557745

Axiom preferences and choice mistakes under risk

Herweg, Fabian; Hippel, Svenja; Müller, Daniel; … - 2024

preferences. Among the behavioral patterns that allow for a clear-cut interpretation on the decision level, we find that roughly …

Persistent link: https://www.econbiz.de/10014578322

Axiom preferences and choice mistakes under risk

Herweg, Fabian; Hippel, Svenja; Müller, Daniel; … - 2024

preferences. Among the behavioral patterns that allow for a clear-cut interpretation on the decision level, we find that roughly …

Persistent link: https://www.econbiz.de/10014556632

The standard model of rational risky decision-making

Falahati, Kazem - In: Journal of risk and financial management : JRFM 14 (2021) 4, pp. 1-22

Expected utility theory (EUT) is currently the standard framework which formally defines rational decision-making under …

Persistent link: https://www.econbiz.de/10012520657

Belief formation and belief updating under ambiguity : evidence from experiments

Li, Wenhui; Wilde, Christian - 2020

Decisions under ambiguity depend on the beliefs regarding possible scenarios and the attitude towards ambiguity. This paper exclusively focuses on beliefs, and beliefs are measured independently from attitudes, in contrast to many previous studies. We use laboratory experiments to estimate the...

Persistent link: https://www.econbiz.de/10012303335

Belief formation and belief updating under ambiguity : evidence from experiments

Li, Wenhui; Wilde, Christian - 2021

This paper investigates beliefs in an ambiguous environment. In contrast to many previous studies, the beliefs regarding possible scenarios are measured independently from attitudes. We use laboratory experiments to estimate the entire distribution of subjective beliefs and examine how beliefs...

Persistent link: https://www.econbiz.de/10012432016

Intuition and reasoning in choosing ambiguous and risky lotteries

Bergheim, Ralf; Roos, Michael W. M. - 2013

This paper focuses on information acquisition and individual decision making in ambiguous situations and presents a …, subjects can reduce or even eliminate the ambiguity and turn the decision situation into one of risk. Under the assumption that … an ambiguity averse subject should reduce ambiguity within a decision process we predicted that these subjects would …

Persistent link: https://www.econbiz.de/10010188142

Estimating ambiguity aversion in a portfolio choice experiment

Ahn, David S.; Choi, Syngjoo; Gale, Douglas; Kariv, Shachar - In: Quantitative economics : QE ; journal of the … 5 (2014) 2, pp. 195-223

We report a portfolio-choice experiment that enables us to estimate parametric models of ambiguity aversion at the level of the individual subject. The assets are Arrow securities that correspond to three states of nature, where one state is risky with known probability and two states are...

Persistent link: https://www.econbiz.de/10011757224

Stochastic choice and preference reversals

Alós-Ferrer, Carlos; Buckenmaier, Johannes; Garagnani, … - 2021 - Revised version

Preferences over risky alternatives can be elicited by different methods, including direct pairwise choices and willingness-to-accept valuations. The results are frequently at odds, casting doubts on the foundations of economics. We develop a stochastic choice model predicting when...

Persistent link: https://www.econbiz.de/10012604712

Adriani, Fabrizio; Sonderegger, Silvia - 2019

expect a decision maker to distinguish between different time periods or different prizes? Our key premise is that cognitive …

Persistent link: https://www.econbiz.de/10012058613