Several firms make business decisions based on risk specifications or estimates provided by domain-experts. But research on whether the format of risk specifications systematically affects decision making in multi-dimensional environments is scarce. Using laboratory experiments, we show that...

The manufacturing complexity of many high-tech products results in a substantial variation in the quality of the units produced. Post manufacturing, the units are classified into vertically differentiated products. These products are typically obtained in uncontrollable fractions, leading to...