This paper examines the empirical validity of Nicolosi's optimal strategy for a hedge fund manager under a specific payment contract. The contract specifies that the manager's payment consists of a fixed payment and a variable payment, which is a performance-based payment. The model assumes that...

We extend the analysis of the data from the experiment of Pradiptyo et al.'s (2015) to help explaining the subjects' behaviour on decision under risk. We investigate the relative empirical performance of the two general models of the stochastic choice: the random utility model (RUM) and the...

This paper examines the empirical validity of Nicolosi's model (2018) which investigates the optimal strategy for a hedge fund manager under a specific payment contract. The contract specifies that the manager's payment consists of a fixed payment and a variable payment, which is based on the...

The standard assumption in economics is that people have well-defined preferences and are able to specify their preferred choice. This is usually adopted by experimenters, when eliciting preferences, by asking subjects to choose between two options: "I choose option A" or "I choose option B"....

This chapter extends the analysis of the data from the experiment of Hey et al. (2017), which was designed to test Proposition 2 of the theory of Manski (2017). I focus on how the subjects select the aspiration levels when they choose to satisfice, and try to find a better explanation for that...