Some people find decision making under uncertainty difficult because they fear making the "wrong decision," wrong in the sense that the outcome of their chosen alternative proves to be worse than could have been achieved with another alternative. These people may be willing to pay a premium to...

Consider the relative attractiveness to a decision maker of two financial gambles as the wealth of that individual varies. It may seem reasonable that either one alternative should be preferred for all wealth levels or that there exists a unique critical wealth level at which the decision maker...

If an alternative is attractive only at certain wealth levels of a decision maker, typically above some critical level, then there will be occasions when it is better to enter into an independent side bet prior to making a decision, than to accept or reject the alternative outright.