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Heuristics and public policy : decision making under bounded rationality
Dhami, Sanjit S.; Al-Nowaihi, Ali; Sunstein, Cass R. - 2018
How do human beings make decisions when, as the evidence indicates, the assumptions of the Bayesian rationality approach in economics do not hold? Do human beings optimize, or can they? Several decades of research have shown that people possess a toolkit of heuristics to make decisions under...
Persistent link: https://www.econbiz.de/10011926917
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Inferring preferences from choices under uncertainty
Kuzmics, Christoph - 2012
optimal choice (or collection of choices) given this preference relation, there is another preference relation that satisfies … EUOL plus the Savage axioms, for which this choice is also optimal. -- ambiguity ; decision theory ; Knightian uncertainty …
Persistent link: https://www.econbiz.de/10009509223
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An Alternative Subjective Expected Utility Representation Theorem
Kuzmics, Christoph - 2012
choice the DM can make) can also be rationalized by the DM maximizing her subjective expected utility for some subjective …
Persistent link: https://www.econbiz.de/10013101803
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Abraham Wald's Complete Class Theorem and Knightian Uncertainty
Kuzmics, Christoph - 2017
I study the implications of Abraham Wald's (1947) complete class theorem for decision making under Knightian uncertainty (or ambiguity). Suppose we call someone who uses Wald's approach to statistical decision making a Waldian. A Waldian may then have preferences over acts that are not in...
Persistent link: https://www.econbiz.de/10012972129
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Chapter 2. Rationality and Dynamic Consistency Under Risk and Uncertainty
Hammond, Peter J.; Zank, Horst - In: Handbook of the economics of risk and uncertainty : volume 1, (pp. 41-97). 2014
For choice with deterministic consequences, the standard rationality hypothesis is ordinality, i.e., maximization of a … weak preference ordering. For choice under risk (resp. uncertainty), preferences are assumed to be represented by the … objectively (resp. subjectively) expected value of a von Neumann-Morgenstern utility function. For choice under risk, this implies …
Persistent link: https://www.econbiz.de/10014025530
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Inferring Preferences from Choices Under Uncertainty
Kuzmics, Christoph - 2012
optimal choice (or collection of choices) given this preference relation, there is another preference relation that satisfies … EUOL plus the Savage axioms, for which this choice is also optimal …
Persistent link: https://www.econbiz.de/10014171994
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Optimal similarity judgments in intertemporal choice (and beyond)
Adriani, Fabrizio; Sonderegger, Silvia - 2019
cognitive resources are costless. Finally, we show that, when applied to choice under risk, the same insights predict anomalies …
Persistent link: https://www.econbiz.de/10012058613
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Comparing Ambiguous Urns with Different Sizes
Filiz-Ozbay, Emel - 2020
We investigate experimentally preferences between different ambiguous processes generated by two-color Ellsberg urns. By providing symmetric information on urns with different numbers of beads and keeping the information on the most optimistic, pessimistic, and equal probability of winning...
Persistent link: https://www.econbiz.de/10012852243
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The strength of sensitivity to ambiguity
Cubitt, Robin P.; Kuilen, Gijs van de; Mukerji, Sujoy - 2018
We report an experiment where each subject's ambiguity sensitivity is measured by an ambiguity premium, a concept analogous to and comparable with a risk premium. In our design, some tasks feature known objective risks and others uncertainty about which subjects have imperfect, heterogeneous,...
Persistent link: https://www.econbiz.de/10011812703
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Discriminating between models of ambiguity attitude : a qualitative test
Cubitt, Robin P.; Kuilen, Gijs van de; Mukerji, Sujoy - 2017
During recent decades, many new models have emerged in pure and applied economic theory according between Epstein (2010) and Klibanoff et al. (2012) identified a notable behavioral issue that distinguishes sharply between two classes of models of ambiguity sensitivity that are importantly...
Persistent link: https://www.econbiz.de/10011756091