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 …

behavior under uncertainty. Recent research has questioned the use of Bayes' rule in descriptive models of behavior, presenting …

landscape. Uncertainty and perceptions are influential drivers when it comes to migration decisions, and yet, the literature … simultaneously associated with uncertainty perceptions. We leverage the British referendum of 2016 to leave the European Union as a … unique natural experiment to demonstrate how collective uncertainty, induced by national government policy, affects the …

We develop a measure of static misallocation that separates uncertainty from misallocation generated by tax …-like distortions. In the Finnish firm-level data, uncertainty accounts for the majority of ex post misallocation and explains a strong … implies idiosyncratic distortions, in line with our accounting approach. According to our quantitative results, uncertainty …

robust model for small amounts of uncertainty and analyze the effect of robustness on optimal trading strategies and …