To identify ambiguity attitudes in general environments, we propose a noncontroversial and easy-to-apply method that first orders beliefs by their "favorableness," and then make inferences based on choices. In our first-price two-person partnership dissolving auction experiments, the partners...

I experimentally examine whether feedback about others' choices provides an anchor for decision-making under ambiguity. In a between-subjects design I vary whether subjects learn choices made individually by a "peer" in a first part when facing the same task a second time, and whether prospects...

It is well-known that various criteria for comparing aversion to real-outcome risks are equivalent. Some of this theory has been extended to Euclidean-outcome risks. We extend it further by:(a) filling the conceptual gaps, most notably by providing a criterion using our generalized Arrow-Pratt...

Models can be wrong and recognising their limitations is important in financial and economic decision making under uncertainty. Robust strategies, which are least sensitive to perturbations of the underlying model, take uncertainty into account. Finding the explicit set of alternative models...

We investigate whether alternative asset classes should be included in optimal portfolios of the most prominent investor personae in the Behavioral Finance literature, namely, the Cumulative Prospect Theory, the Markowitz and the Loss Averse types of investors. We develop a stochastic spanning...