of boundedly rational individuals. In view of such a causal role of theories we discuss how advice of a theory of …

In this paper we investigate four hypotheses which are inconsistent with expected utility theory, but may well be … explained by prospect theory. It deals with framing, the non-linearity of subjective probabilities, the disposition effect, and …) found little correspondence between different experimental risk elicitation methods. -- Prospect Theory ; Framing …

economic theory suggests to solve the decision problem. But since real decision makers can hardly be expected to behave … according to the theoretical solution in the problem at hand, I describe several heuristics or rules of thumb and investigate …

these changes. Households therefore often rely on simple heuristics when deciding what to consume, e.g. in the form of a … commodities as food items. Using utility functions we can measure the welfare loss, caused by such heuristics, and to what extent …