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An Approximate Dual-Self Model and Paradoxes of Choice under Risk
Fudenberg, Drew; Levine, David K.; Maniadis, Zacharias - 2012
Persistent link: https://www.econbiz.de/10009615723
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Rationality on the rise : why relative risk aversion increases with stake size
Fehr-Duda, Helga; Bruhin, Adrian; Epper, Thomas; … - 2008 - Revised version
expected utility theory, but also prospect theory. …
Persistent link: https://www.econbiz.de/10003892446
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Ever since Allais
Dembo, Aluma; Kariv, Shachar; Polisson, Matthew; Quah, … - 2021
The Allais critique of expected utility theory (EUT) has led to the development of theories of choice under risk that … labora-tory experiments designed to test independence, our experiment systematically tests the entire set of axioms …
Persistent link: https://www.econbiz.de/10012583551
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Stochastic expected utility and prospect theory in a horse race : a finite mixture approach
Bruhin, Adrian - 2008
This study compares the performance of Prospect Theory versus Stochastic Expected Utility Theory at fitting data on … Allais paradox or the fourfold pattern of risk attitudes. Stochastic Expected Utility Theory parsimoniously extends the … standard microeconomic model, whereas Prospect Theory, the benchmark for aggregate choice so far, is based on psychological …
Persistent link: https://www.econbiz.de/10003894019
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Market allocations under ambiguity : a survey
Billot, Antoine; Mukerji, Sujoy; Tallon, Jean-Marc - 2019
We review some of the (theoretical) economic implications of David Schmeidler's models of decision under uncertainty (Choquet expected utility and maxmin expected utility) in competitive market settings. We start with the portfolio inertia result of Dow and Werlang (1992), show how it does or...
Persistent link: https://www.econbiz.de/10012121980
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Market allocations under ambiguity : a survey
Billot, Antoine; Tallon, Jean-Marc; Mukerji, Sujoy - 2019
Persistent link: https://www.econbiz.de/10012233248
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Discriminating between models of ambiguity attitude : a qualitative test
Cubitt, Robin P.; Kuilen, Gijs van de; Mukerji, Sujoy - 2017
During recent decades, many new models have emerged in pure and applied economic theory according between Epstein (2010 … to an ambiguity averse preference for a randomized act. Building on this insight, we implement an experiment whose design …
Persistent link: https://www.econbiz.de/10011756091
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Three layers of uncertainty : an experiment
Aydogan, Ilke; Berger, Loϊc; Bosetti, Valentina; Liu, Ning - 2018
We experimentally explore decision-making under uncertainty using a framework that decomposes uncertainty into three distinct layers: (1) physical uncertainty, entailing inherent randomness within a given probability model, (2) model uncertainty, entailing subjective uncertainty about the...
Persistent link: https://www.econbiz.de/10011862952
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Ellsberg re-revisited : an experiment disentangling model uncertainty and risk aversion
Berger, Loic; Bosetti, Valentina - 2016
The results of an experiment extending Ellsberg's setup demonstrate that attitudes towards ambiguity and compound …
Persistent link: https://www.econbiz.de/10011457763
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Uncertainty and natural resources : prudence facing doomsday
Emmerling, Johannes - 2015
This paper studies the optimal extraction of a non-renewable resource under uncertainty using a discrete-time approach in the spirit of the literature on precautionary savings. We find that boundedness of the utility function, in particular the assumption about U(0), gives very different results...
Persistent link: https://www.econbiz.de/10010528821