<Para ID="Par1">Animals deal with predictable and unpredictable events on a daily basis. Yet our knowledge of the cognitive processes involved in decisions remains limited. We tested capuchins, macaques and orang-utans in a food-gambling task to investigate whether or not individuals estimate the chances of...</para>

We conduct multiple price list experiments that elicit life duration risk preferences from amateur auto racers, technical rock climbers, SCUBA divers, and a student control group. We posit a preference function that allows for risk aversion and probability weighting. We are particularly...

This paper investigates whether preferences over environmental risks are best modeled using probability-weighted utility functions or can be reasonably approximated by expected utility (EU) or subjective EU models as is typically assumed. I elicit risk attitudes in the financial and...

This paper proposes a new decision theory of how individuals make random errors when they compute the expected utility of risky lotteries. When distorted by errors, the expected utility of a lottery never exceeds (falls below) the utility of the highest (lowest) outcome. This assumption implies...

Many different functional forms have been suggested for both the value function and probability weighting function of Cumulative Prospect Theory (Tversky and Kahneman, 1992). There are also many stochastic choice functions available. Since these three components only make predictions when...

Five descriptive models of risky decision making are tested in this article, including four quantitative models and one heuristic account. Seven studies with 1802 participants were conducted to compare accuracy of predictions to new tests of first order stochastic dominance. Although the...