and the potential increments over it are evaluated by subjective expected utility with a risky utility function u. In … contrast to earlier approaches with models that aimed at separating riskless and risky utility, CT does not violate basic … irregularities like the expected utility paradoxes of Allais and Rabin, CT also separates risk attitude in the strong sense from …

Experiments on intertemporal consumption typically show that people have difficulties in optimally solving such … long horizons. We present an experiment comparing decision making under certainty, risk, and ambiguity, over a shorter …