We propose a new decision criterion under risk in which people extract both utility from anticipatory feelings ex ante … raises both the utility of ex ante feelings and the risk of disappointment ex post. We characterize the optimal beliefs and … the preferences under risk generated by this mental process and apply this criterion to a simple portfolio choice …

Define the riskiness of a gamble as the reciprocal of the absolute risk aversion (ARA) of an individual with constant … “duality” axiom which, roughly speaking, asserts that less risk-averse individuals accept riskier gambles. The index is …

In the expected-utility theory of the monetary value of a statistical life, the so-called "dead-anyway" effect … risk increases with the initial level of risk. Their reasoning is based on differences in the marginal utility of wealth …: first, for a risk-averse individual without a bequest motive, marginal WTP for survival does increase with the level of risk …

-pricing model in which heterogeneous agents behave consistently with a constant relative risk aversion assumption can be applied to …

can undertake an active portfolio management strategy by investing in both risk-free and risky assets. Using a two …

Experimental research on decision making under risk has until now always employed choice data in order to evaluate the …

estimate of risk aversion ? and the time preference discount rate ? perindividual. This can be done because the consumption of …

One possible conclusion from recent experimental research on decision making under risk is that observed behaviour can … of the subjects and most of the choice problems under risk. However, it turns out that for decision problems under … plus error term may be regarded as a reasonable representation for choice under risk this does not seem to be true for …

Experimental research on decision making under risk has until now always employed choice data in order to evaluate the …