We report an experimental test of the four touchstones of rationality in choice under risk – utility maximization …, stochastic dominance, expected-utility maximization and small-stakes risk neutrality – with students from one of the best …

As in any research field, risk theory has its important questions, results, and paradoxes, as well as its seminal … papers and key authors. Louis Eeckhoudt has been a key author in the field of risk theory. To celebrate his many … contributions and continue the development of theories of decision making under risk, the Toulouse School of Economics hosted “Risk …

The economic theory of decision making under risk has seen remarkable advances over the 50 years since Pratt’s (1964 …) characterization of risk aversion under expected utility. We review developments in three key areas to which Louis Eeckhoudt has made … significant contributions: (1) increases in risk and risk taking; (2) self-protection and risk aversion; and (3) higher (and lower …

As in any research field, risk theory has its important questions, results, and paradoxes, as well as its seminal … papers and key authors. Louis Eeckhoudt has been a key author in the field of risk theory. To celebrate his many … contributions and continue the development of theories of decision making under risk, the Toulouse School of Economics hosted “Risk …

uncertainty. J. Risk and Uncertainty 5 297--323.) and Prelec (Prelec, Dra\v{z}en. 1995. The probability weighting function …

by the decision makers attitude to risk. If the family of risky prospects can be ordered so that as decision makers are … more risk tolerant they choose a gamble higher in the ordering, then it is natural to say that the family of risky …

This chapter of a collective book aims at presenting the basics of decision making under risk. We first define notions … of risk and increasing risk and recall definitions and classifications (that are valid independently of any … representation) of behavior under risk. We then review the classical model of expected utility due to von Neumann and Morgenstern …