Data on contestants’ choices in Italian Game Show Affari Tuoi are analysed in a way that separatesthe effect of risk attitude (preferences) from that of beliefs concerning the amount ofmoney that will be offered to contestants in future rounds. The most important issue addressedin the paper is...

Economics and management science share the tradition of ordering risk aversionby fitting the best expected utility (EU) model with a certain utility function to in-dividual data, and then using the utility curvature for each individual as the soleindex of risk attitude. (Cumulative) Prospect...

The Porter hypothesis suggests that environmental regulations, such as restricting firms to reduce pollution, stimulates innovations and create a win-win situation for the environment and for firms. It has received a great deal of attention from academics as well as bureaucrats who disagree...

In the framework of expected utility theory, risk attitudes are entirely capturedby the curvature of the utility function. In cumulative prospect theory (CPT) riskattitudes have an additional dimension: the weighting of probabilities. With thismodication, one question arises naturally: since...

Human decision making is a process guided by different and partly competing mo-tivations that can each dominate behavior and lead to different effects depending on strength and circumstances. “Over-stylizing” neglects such competing concerns and context-dependence, although it facilitates...

The satisficing approach is generalized and applied to finite n-person games.Based on direct elicitation of aspirations, we formally define the conceptof satisficing, which does not exclude (prior-free) optimality but includesit as a border case. We also review some experiments on strategic...

Charness et al. (2007b) have shown that group membership has a strong effect on individualdecisions in strategic games when group membership is salient through payoff commonality.In this comment I show that their findings also apply to non-strategic decisions, even when nooutgroup exists, and I...

On a heterogeneous experimental oligopoly market, sellers choose a price,specify a set-valued prior-free conjecture about the others' behavior, andform their own profit-aspiration for each element of their conjecture. Weformally define the concepts of satisficing and prior-free optimality...

Similar to welfare economics where with(out) interpersonal comparisonsone defines unique (set-valued) welfare (Pareto) optima, we present a frameworkfor one-person decision making where with(out) a prior probability distributionindividual optimality prescribes usually a unique (set of)...

In this paper we experimentally test skewness seeking at the individuallevel. Several prospects that can be ordered with respect to the third-degreestochastic dominance (3SD) criterion are ranked by the participants of theexperiment. We find that the skewness of a distribution has a...