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 …

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 …

payoffs, our model provides a novel and unified account of many empirical phenomena, including frequent risk-seeking behavior …

-driven equilibria under general utility functions within an OLG structure. Our paper further shows that the existence of sentiment …

expected utility paradigm in decision making substantially underestimates society's willingness to pay to reduce risk in small …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 …

A number of authors have suggested that investors derive utility from realizing gains and losses on assets that they … own. We present a model of this "realization utility," analyze its predictions, and show that it can shed light on a …

Using implicit expected utility theory, a money metric of utility derived from playing a lottery game is developed …. Output of the lottery sector can be defined as the difference in utility with and without the game. Using a kinked parametric …

because of inconsistencies in revealed preferences across behavioral frames. We adapt theories of expected utility … welfare functions, with intrapersonal frames replacing interpersonal types. Under paternalistic risk aversion or ambiguity …

future utility flows, and hence have higher current felicity if they believe that better outcomes are more likely. On the … increased anticipatory utility and only to second-order costs due to distorted behavior. We show that in a portfolio choice …

"Economic evaluation of climate policy traditionally treats uncertainty by appealing to expected utility theory. Yet … such circumstances, it has been argued that the axioms of expected utility theory may not be the correct standard of … of abatement is more sensitive to risk aversion than to ambiguity aversion because, according to our data, the inter …