We design and implement a novel experimental test of subjective expected utility theory and its generalizations. Our … function, but not with subjective utility theory. The theory is tested by gauging how subjects respond to price changes. A … majority of subjects respond to price changes in the direction predicted by the theory, but not to a degree that makes them …

to misspecification, and ultimately leads to post-decision disappointment. Using statistical decision theory, we develop … the model’s implications for optimal decision-making. This practice ignores model ambiguity, exposes the decision problem … a framework to explore, evaluate, and optimize robust decision rules that explicitly account for estimation uncertainty …

-)variance of power plant profits. If investors are risk-averse, these differ- ences lead to divergent investment portfolios …, breaking the equivalence of price- and quantity-based policy instruments under risk-neutrality. Using the European power sector … with increasing risk aversion. …

We test the effects of dual processing differences in both individual traits and decision states on risk taking. In an … emotion or reason, while simultaneously measuring individual decision-making traits. Our results show that decision …-making traits are strong and robust determinants of risk taking: a more intuitive trait is associated with more risk taking, while a …

As technology-assisted decision-making is becoming more widespread, it is important to understand how the algorithmic … study the preference for human or algorithmic decision makers in re-distributive decisions. In particular, we consider … whether algorithmic decision maker will be preferred because of its unbiasedness. Contrary to previous findings, the majority …

Time pressure is a central aspect of economic decision making nowadays. It is therefore natural to ask how time … to cope with time pressure varies significantly across decision makers, leading to selected subgroups that differ in … jointly predict individuals' decision quality and ability to keep their decision strategy under time pressure. …

choices being observed, compared to anonymity of choices, on risk taking in a laboratory experiment. I relate participants …' investments in a risky asset directly to social norms for risk taking that are elicited in an incentivized procedure. I find that … risk taking is not affected by the choice being observed by a matched participant. Nor do investments follow elicited norms …

benchmark theory. The difference's robustness to a number of variations provides insights about the drivers of this effect. …

We propose a class of multiple-prior representations of preferences under ambiguity where the belief the decision …