Decision making usually involves uncertainty and risk. Understanding which parts of the human brain are activated … investment decision task from Mohr et al. (2010b). We obtain a time series of three-dimensional images of the blood … subjects' decision behavior. Keywords: risk, risk attitude, fMRI, decision making, medial orbifrontal cortex, semiparametric …

, the overall decision situation is ultra simple. It is so simple that: a) economists and psychologists can mechanically … model and identify what is a mistake, and b) decision makers can maximise. However, contrary to prospect theory, in the …

variable is the particular decision stage at which a global risk is resolved: (i) before the investment decision; (ii) after … the investment decision but before the resolution of the investment risk; (iii) after the resolution of the investment … influence decision making. …

We propose a new decision criterion under risk in which people extract both utility from anticipatory feelings ex ante … and disutility from disappointment ex post. The decision maker chooses his degree of optimism, given that more optimism … the decision maker takes on less risk compared to an expected utility maximizer. This speaks to the equity premium puzzle …

variable is the particular decision stage at which a global risk is resolved: (i) before the investment decision; (ii) after … the investment decision, but before the resolution of the decision risk; (iii) after the resolution of the decision risk …. Dependent on the timing of the global risk different combinations of anticipated and experienced emotions influence decision …

This paper considers a general class of stochastic dynamic choice models with discrete and continuous decision …