ability”, such as poor education, unemployment, and little financial sophistication. Based on prospective reference theory, we … is linked to risk-related characteristics, such as risk tolerance and optimism. This indicates a potential problem as …

ability", such as poor education, unemployment, and little financial sophistication. Based on prospective reference theory, we … is linked to risk-related characteristics, such as risk tolerance and optimism. This indicates a potential problem as …

In confidence theory, the decision maker relies on statistical regularities from the economic environment to adopt … formation in choice under risk. Three novel experiments are presented that demonstrate the ability of the new theory to explain … prior in Bayesian inference is proportional to the uncertainty related to its distribution, the decision maker arrives at …

, subjects can reduce or even eliminate the ambiguity and turn the decision situation into one of risk. Under the assumption that …This paper focuses on information acquisition and individual decision making in ambiguous situations and presents a … choice between risky and ambiguous Ellsberg urns, we let them choose between a safe option and a risky lottery, whose risk is …

, subjects can reduce or even eliminate the ambiguity and turn the decision situation into one of risk. Under the assumption that …This paper focuses on information acquisition and individual decision making in ambiguous situations and presents a … choice between risky and ambiguous Ellsberg urns, we let them choose between a safe option and a risky lottery, whose risk is …

We report a portfolio-choice experiment that enables us to estimate parametric models of ambiguity aversion at the … specification includes two parameters: one for ambiguity attitudes and another for risk attitudes. We also estimate a three …

experimental data showing that violations of the Reduction of Compound Lotteries Axiom are significantly more problematic, and our … findings are robust to both choice and pricing tasks. We discuss the implications of our findings for various decision …

We review some of the (theoretical) economic implications of David Schmeidler's models of decision under uncertainty … equilibrium implications (indeterminacies, non revelation of information) of these decision models. A section is then devoted to …

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 …