information. We conducted three studies to test the PH empirically by analyzing individual choice patterns, decision times and … information search parameters in diagnostic decision tasks. Results on all three dependent variables conflict with the predictions … of the PH and can be better explained by the CPT. The predictive accuracy of the PH was high for decision tasks in which …

decision making under risk. Both theories incorporate well-known deviations from Expected Utility Maximization such as the …

performance, together influence the decision to hold on to or to capitulate on an investment. We study the relative contribution … decision to capitulate an investment, however, only depends directly on the expectation about the stock’s future performance …. The adaptation level, by contrast, affects the actual investment decision indirectly via its impact on expectations. …