Are individuals expected utility maximizers? This question represents much more than academic curiosity. In a normative … utility maximization paradigm literally the only game in town. In this study, we advance the literature by exploring CEO … that both our CEO and student subject pools exhibit frequent and large departures from expected utility theory. In addition …

Risk and time are intertwined. The present is known while the future is inherently risky. Discounted expected utility … robust violations of discounted expected utility, inconsistent with both prospect theory probability weighting and models …

There is convincing experimental evidence that Expected Utility fails, but when does it fail, how severely, and for … Expected Utility performs well away from certainty, but fails near certainty for about 40% of subjects. Comparing non …-Expected Utility theories, we strongly reject Prospect Theory probability weighting, we support disappointment aversion if amended to …

Psychologists study regret primarily by measuring subjects' attitudes in laboratory experiments. This does not shed …

expected utility (GEU) to the diversification of agents who maximize the conventional expected utility (EU). Specifically, we … derive the patterns of diversification for agents who maximize a rank-dependent' expected utility, attaching more weight to … bad' than to good' outcomes, in contrast to the probability weights used in a conventional expected utility maximization …

We develop a demographically-based approach for estimating the utility discount rate (UDR) portion of the Ramsey rule …

experiment, counterfactual simulations show that sector neutral productivity growth, which generates shifts in consumption … the skill premium of more than 10%. In a second experiment, we show that trade cost reductions generate quantitatively …

such demand systems are integrable, i.e. can be derived from the maximization of a well-behaved utility function. This …