We study time preferences in a real-effort experiment with a one-month horizon. We report thattwo thirds of choices suggest negative time preferences. Moreover, choice reversal over time iscommon even if temptation plays no role. We propose and measure three distinct concepts ofchoice reversal...

The notion of choice inconsistency is widely spread in the literature on behavioraleconomics. Several approaches were used to account for the observation that peoplereverse their choices over time. This paper aims to explain the formation of resolutionsregarded as internal self-binding devices....

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...

Theoretically and experimentally, we generalize the analysis of acquiringa company (Samuelson and Bazerman 1985) by allowing for competition ofboth, buyers and sellers. Naivety of both is related to the idea that higherprices exclude worse qualities. While competition of naive buyers...

Preference for control affects investment behavior. Participants of laboratory experiments invest different amount of money in a risky asset when face with two different methods of control which have identical payoff structure and probability distribution, but provide different sense of control....

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...

Previous research indicates that risky and uncertain marginal returnsfrom the public good significantly lower contributions. This paper presentsexperimental results illustrating that the effects of risk and uncertainty dependon the employed parameterization. Specifically, if the value of the...

The literature on social preferences provides overwhelming evidence of departuresfrom pure self-interest of individuals. Experiments show that people care about others’well-being and their relative standing. This paper investigates whether this type ofbehavior persists when risk comes into...

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...