We propose the use of Bayesian estimation of risk preferences of individuals for applications of behavioral welfare economics to evaluate observed choices that involve risk. Bayesian estimation provides more systematic control of the use of informative priors over inferences about risk...

We propose the use of Bayesian estimation of risk preferences of individuals for applications of behavioral welfare economics to evaluate observed choices that involve risk. Bayesian estimation provides more systematic control of the use of informative priors over inferences about risk...

Interpersonal heterogeneity in risk attitudes is a regular feature of experimental data on decision making under risk. Despite a growing consensus on the use of the random coefficient or hierarchical model to accommodate this heterogeneity, there is a burgeoning Bayesian-classical divide...

We propose a coherent inference model that is obtained by distorting the prior density in Bayes' rule and replacing the likelihood with a so-called pseudo-likelihood. This model includes the existing non-Bayesian inference models as special cases and implies new models of base-rate neglect and...