Prospect theory (PT) is the dominant descriptive theory of decision making under risk today. For the modeling of … choices, PT relies on a psychologically founded separation of risk attitudes into attitudes towards outcomes, captured in a … experiments. In the first experiment, we elicit the value and probability weighting functions both under known and unknown …

variable is the particular decision stage at which a global risk is resolved: (i) before the investment decision; (ii) after … the investment decision, but before the resolution of the decision risk; (iii) after the resolution of the decision risk … problem involves the presence of a “global risk,” that is, a chance of losing everything whichever safe or risky option is …

experimental studies and the conclusion has been drawn that banks could in fact influence investors' risk taking behavior by … and manipulates feedback frequency (and investment flexibility) within-subject. Our analysis reveals that the impact of … superimpose the standard MLA effect and generate unexpected dynamic patterns of risk taking behavior …

It has been widely documented in laboratory experiments that subjects act more risk-averse when they make their …

treatment. The procedures in our experiment allow us to circumvent the critique of altered expectations. Our results call for a …

predictions that give the exact test on prudence, an experiment was designed where subjects go through higher order risk attitude …This paper provides experimental evidence of the role of higher order risk attitudes - especially prudence - in … risk neutral level when the risk of losing part of an income exists in a future (the same) period. Motivated by these …

We report on a laboratory experiment testing for the presence of loss aversion, as separate from risk aversion … loss by experimental participants. Our experimental design augments the Holt-Laury risk preference elicitation methodology … additional reluctance to participate in a mixed domain lottery beyond that predicted by risk aversion. We show that only …

In this study I analyze how lottery framing and lottery display type affect the degree of higher-order risk preferences …

I exploit a natural experiment to show that household investment decisions depend on the manner in which information is …

We experimentally test overconfidence in investment decisions by offering participants the possibility to substitute … their own for alternative investment choices. Overall, 149 subjects participated in two experiments, one with just one risky …