This paper focuses on information acquisition and individual decision making in ambiguous situations and presents a …, subjects can reduce or even eliminate the ambiguity and turn the decision situation into one of risk. Under the assumption that … an ambiguity averse subject should reduce ambiguity within a decision process we predicted that these subjects would …

decision and to the decision itself based on this information. I focus on urn decisions and conduct treatments that consider …

This paper presents an experiment on the loyalty enhancing effect potentially created by retroactive price reduction …

violation of the Expected Utility Theory Axioms – may be easily explained by assuming that changes in wealth (i.e. gains and … absolute terms leads to the conclusion that the choices violate the axioms underlying Expected Utility Theory, and are …

Theory. The second is the Relative Utility Function, which strongly resembles the utility function hypothesized by Markowitz … (1952). It is shown that the relative utility model follows Expected Utility Theory with a transformed outcome domain. An … Cumulative Prospect Theory has been derived using two-outcome lotteries only, and it is hard to find any evidence in the …

dependant on the context of the problem under consideration. The former assumption leads to the design of Prospect Theory, the … crucial arguments for the latter approach and provides strong arguments for rejecting the Prospect Theory paradigm. …