This chapter reviews developments in the theory of decision making under risk and uncertainty, focusing on models that … “linearity in the probabilities” aspect of expected utility theory to game theory. The chapter consists of two main parts: The … first part reviews models of decision making under risk that depart from the independence axiom, focusing on the rank …

experiments than in real life. We modify standard risky choice protocols by making participants earn their money at risk by … completing manual tasks such as peeling potatoes. This leads to less risk-taking and to choices more consistent with those online … survey respondents anticipate making with their own money. When realistic levels of risk aversion are important, experiments …