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When asset returns are unstable, investment performance directly depends on learning about their patterns optimally. Without optimal learning, strong investment performance is not possible. Yet, optimal learning is often considered too complex for investors to achieve. In order to test this...
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It is increasingly recognized that decision making under uncertainty does not depend only on probabilities, but also on psychological factors. People display ambiguity aversion in preferring to bet on events with known probabilities rather than those for which probabilities are not known. People...
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expected utility theory (EU) -- 1.2.2 Attitudes to risk under EU …1.3 Subjective expected utility theory (SE -- 1.4 Eliciting the utility function under EU -- 1.4.1 The case of known … probabilities -- 1.4.2 The case of unknown probabilities -- 1.5 Violations of expected utility theory -- 1.5.1 Violations of the …
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This is the first definitive introduction to behavioral economics aimed at advanced undergraduate and postgraduate students. Authoritative, cutting edge, yet accessible, it guides the reader through theory and evidence, providing engaging and relevant applications throughout
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Risk and time are intertwined. The present is known while the future is inherently risky. Discounted expected utility … robust violations of discounted expected utility, inconsistent with both prospect theory probability weighting and models …
Persistent link: https://www.econbiz.de/10012462308