The theory of expected utility maximization (EUM) proposed by Bernoulli explains risk aversion as a consequence of … from the terms offered; and subjects often appear to be too risk averse with regard to small gambles (while still accepting … from judgments based on imprecise (and noisy) mental representation of the decision situation. In this model, risk aversion …

subjects repeatedly make investment decisions, there is minimal computational burden, and at all times subjects have complete … investment decisions and harm performance. More knowledgable subjects make better decisions, but are also affected by categorized …

challenging. Here, we consider investment opportunities that change randomly, while payoffs are observable only when invested. In …

information displayed) on investors' information processing and investment judgments. Results show that when the filing is less … investors' processing of non-repeated information and influences investment judgments in a corresponding manner …

price follows geometric Brownian motion and the money account has a constant interest rate. I experimentally test Nicolosi …

We study in an experiment whether humans prefer to depend on decisions of other humans (social uncertainty) or states … other humans. This is the first experiment that studies social uncertainty that does not derive from a strategic situation …

We use a simple, three-item test for cognitive abilities to investigate whether established behavioral biases that play … a prominent role in behavioral economics and finance are related to cognitive abilities. We find that higher test scores … on the Cognitive Reflection Test of Frederick (2005) indeed are correlated with lower incidences of the conjunction …

We use a simple, three-item test for cognitive abilities to investigate whether established behavioral biases that play … a prominent role in behavioral economics and finance are related to cognitive abilities. We find that higher test scores … on the Cognitive Reflection Test of Frederick (2005) indeed are correlated with lower incidences of the conjunction …