extent observed team decisions under risk are actually consistent with the principles of rational choice, specifically the … principles of <i>Expected Utility Theory</i> (EUT) and of <i>Portfolio Selection Theory</i> (PST). The experiment is performed …. Compared to individuals, teams accumulate significantly more expected value at a significantly lower total risk (measured in SD …

value maximization in tickets. This payoff scheme was increasingly used to induce risk neutrality in experiments. The …, another directly in money. significantly greater deviations from risk neutral behavior are observed with binary lottery …

This study test whether social reference points impact individual risk taking. In a laboratory experiment, decision … across two treatments. We find a signicant treatment effect on risk taking: decision makers vary their risk taking in order … of private reference points on risk taking. …

We propose an experimental method to test individuals for prudence (i.e. downside risk aversion) outside the expected …

unknown value. A winner’s curse phenomenon arises when subjects bid too high and make losses. Learning direction theory can … account for this. However, other influences on behaviour can also be identified. We introduce impulse balance theory to make … quantitative predictions on the basis of learning direction theory. We also look at monotonic ladder processes. It is shown that …