. -- age ; cumulative prospect theory ; risk aversion ; probability weights ; reference point … incentives. We estimate the parameterized models in the framework of cumulative prospect theory and examine the risk aversion …, probability weightings and reference point adoption of elderly and young groups. The results of our experiment indicate that the …

uncertainty are closely related. However, this association is much stronger when the second layer of uncertainty is subjective … probabilities, and (3) are ambiguity non-neutral. By decomposing ambiguity into risk and model uncertainty, and jointly eliciting … the attitudes individuals manifest towards these two types of uncertainty, we characterize individuals' degree of …

Anscombe and Aumann (1963) offer a definition of subjective probability in terms of comparisons with objective … probabilities. That definition - which has provided the basis for much of the succeeding work on subjective probability - presumes … that the subjective probability of an event is independent of the prize consequences of that event, a property we term …

Anscombe and Aumann (1963) offer a definition of subjective probability in terms of comparisons with objective … probabilities. That definition - which has provided the basis for much of the succeeding work on subjective probability - presumes … that the subjective probability of an event is independent of the prize consequences of that event, a property we term …

Prospect theory (PT) is the dominant descriptive theory of decision making under risk today. For the modeling of … value function; and attitudes towards probabilities, captured in a probability weighting function. However, while it is … experiments. In the first experiment, we elicit the value and probability weighting functions both under known and unknown …

dependence in probabilities. According to this model, individuals form subjective beliefs on the potential winning probability of … the ambiguous asset; use the winning probability of the (simultaneously presented) risky asset as a reference point to …; weight losses in probability heavier than gains in probability. We tested the crucial assumption, reference dependence in …

Vague, or imprecise, news may affect decisions by changing either the fundamentals, or the associated uncertainty, or … vague news conveying a relatively high probability of success, subjects exhibit insensitivity to the ambiguity component …