We relax assumptions on individual risk preference, and set two theoretical rules for portfolio choices: either … minimize or maximize risk, for any return. Risk is modeled by four alternative formulas. We empirically test these rules by … uniquely consider 'money'; or they experience a 'subjective' perception of money. We find a large dominance of risk …

useful for out-of-sample prediction. Nor do we find practical applications of Bernoulli functions in major risk … potentially observable opportunities rather than on unobservable Bernoulli functions. -- expected utility ; risk aversion ; St …

useful for out-of-sample prediction. Nor do we find practical applications of Bernoulli functions in major risk …

Heterogeneous beliefs among market participants can lead to questionable speculative trading that goes beyond any risk … pricing for ambiguous contracts, without compromising legitimate risk-hedging activities. While Arrow-Debreu equilibria …

information, and control for risk attitude. We find that the strength-weight bias affects expectations, but that its magnitude is … incentive compatibility and controls for risk attitude considerably affect inferences on errors in expectations. …

. The latter involves decisions under ambiguity, decisions under risk, decisions after gaining experience and decisions …We assess the ability of different risk profiling measures to predict risk taking along a multi-stage decision process … after receiving outcome information on previous decisions. We find that in all decisions risk taking can be predicted by …

We propose the Virtual Bingo Blower (VBB) as a way to generate credible risk and ambiguity in computerized experiments …, we measure ambiguity attitudes and vary the source of ambiguity, using either the VBB or natural events. We find that the … VBB and natural events result in a similar degree of ambiguity aversion. Further, we find that, by manipulating the number …

they know more about, even when their beliefs are held constant. (They are averse to "ambiguity", or uncertainty about … probability.) We review evidence, recent theoretical explanations, and applications of research on ambiguity and SEU. …