Contrary to the models of deterministic life cycle saving, we take itfor granted that uncertainty of one's future is the essential problem ofsaving decisions. However, unlike the stochastic life cycle models, we capturethis crucial uncertainty by a non-Bayesian scenario-based...

Amidst a sharp increase in household debt levels, many countries have substantially reformedtheir consumer bankruptcy regulations. I first classify the mechanisms triggered by current U.S.and European bankruptcy regulations and then evaluate these mechanisms within a hidden actionmodel. I...

We investigate the gender specific inter-temporal allocation behavior ofspouses with different deterministic life expectations in an experimentwhere the gender of one's partner is known. In each period of theirlife both partners propose a consumption level one of which is thenrandomly...

We investigate the intertemporal and interpersonal allocation behavior ofspouses with different deterministic life expectations in an experiment. In eachperiod of their life both partners propose a consumption level one of which isthen randomly implemented. In spite of the complex dynamics...

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...