expectations. We examine the predictions of Kőszegi and Rabin (2006) in the context of market experiments with probabilistic forced … exchange. The experiment tightly tests the predictions of Kőszegi and Rabin (2006), as when the probability of forced exchange … these theoretical predictions. In a series of experiments with a total of 930 subjects, sellers' valuations exceed buyers …

and the potential increments over it are evaluated by subjective expected utility with a risky utility function u. In … contrast to earlier approaches with models that aimed at separating riskless and risky utility, CT does not violate basic … irregularities like the expected utility paradoxes of Allais and Rabin, CT also separates risk attitude in the strong sense from …

Experiments on intertemporal consumption typically show that people have difficulties in optimally solving such … long horizons. We present an experiment comparing decision making under certainty, risk, and ambiguity, over a shorter …