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We study how temporal separations affect recurring decision-making under risk and thus ask when reference points update. Using both experimental and panel data from a casino, we analyze how individual risk-taking behavior during a casino visit depends on the outcomes of temporally separated...
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This paper investigates how framing manipulations affect the quantity and quality of decisions. In a field experiment …
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elicitation of risk preferences? Can we make designs that are simple enough for them to give rational responses that reveal their … true preferences? And how much does variation in their limited numeracy skills contribute to decision errors and the … whether Rank Dependent Utility (RDU) does better in the analysis of decision errors and risk preferences in our context. We …
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The preference reversal phenomenon is one of the most important, long-standing, and widespread anomalies contradicting economic models of decisions under risk. It describes the robust observation of frequent "standard reversals" where long-shot gambles are valued above moderate ones but then the...
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