The theory of expected utility maximization (EUM) proposed by Bernoulli explains risk aversion as a consequence of … bias | but one that represents an optimal Bayesian decision, given the limitations of the mental representation of the … laboratory experiment …

The theory of expected utility maximization (EUM) explains risk aversion as due to diminishing marginal utility of … need for a nonlinear utility-of-wealth function, and instead results from a sort of perceptual bias — but one that … numerical cognition, and test its ability to explain the choice frequencies that we observe in a laboratory experiment …

The theory of expected utility maximization (EUM) proposed by Bernoulli explains risk aversion as a consequence of … bias | but one that represents an optimal Bayesian decision, given the limitations of the mental representation of the … laboratory experiment. …

The theory of expected utility maximization (EUM) explains risk aversion as due to diminishing marginal utility of … need for a nonlinear utility-of-wealth function, and instead results from a sort of perceptual bias -- but one that … numerical cognition, and test its ability to explain the choice frequencies that we observe in a laboratory experiment …