We assess the ability of different risk profiling measures to predict risk taking along a multi-stage decision process …-assessed risk tolerance measures are not suitable for predicting risk taking in any stage of the decision process. Among the …. The latter involves decisions under ambiguity, decisions under risk, decisions after gaining experience and decisions …

Use of preference information to infer risk tolerance has increased in recent years as a way to inform benefit-risk … evaluations in regulatory and medical decision making. However, a framework for the measurement of tolerance for multiple … uncertain outcomes has not been formalized when choices do not comply with expected utility theory (EUT). We developed a formal …

In this paper, we assess the degree to which four of the most commonly used models of risky decision making can explain … enough to approximate Kahnenman and Tversky's prospect theory and that for certain parametric values will yield the expected … explain the decision-making behavior of the majority of our subjects. Surprisingly, we find that the choice behavior of the …

We report evidence of an endowment effect for risk, extending previous results to the popular paired-choice lottery … setting. Specifically, we observe a distribution of revealed preferences consistent with risk aversion that diminishes in …

The global financial crisis that began in 2007 was not predicted by standard economic theory which assumes rational … its influence on economic theory has ebbed and flowed over the years. Keynes had important psychological insights, but … reasoning about economic phenomena. The assumption of rationality that is prevalent in much of economic theory is based on a …

We propose a simple model of decision making under risk inspired by the "half-full, half-empty" glass metaphor. The …

Every day we make decisions under risk often due to an uncertain future. In order to make decisions about the future …, we must create a model able to convert uncertainty into risk probabilities. Understanding how we make decisions under … risk has been the subject of a plethora of research. This paper updates the current literature and uses behavioral finance …

aggressively bid in auctions and contests. Do people try to trade-off the probability of winning with other basic risk dimensions … decision-making process. Based on the results, a proportion is classified as expected utility maximizer (EUM) while another … the puzzle of equilibrium effort more than risk-neutral Nash equilibrium in experiments …