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temperance. Our theoretical approach is to define risk compensations of different orders, and in an experiment we elicit these …. In contrast to commonly used utility functions, prospect theory can predict this behavioral pattern. In our experiment …
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We report experimental findings about subjects’ behavior in dynamic decision problems involving multistage lotteries with different timings of resolution of uncertainty. Our within-subject design allows us to study violations of the independence and dynamic axioms: Dynamic Consistency,...
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that they face equal risks. Here, the theorem is tested in an experiment where the probability of loss, and the information …
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