payers act according to some non-expected utility theory, and (2) Individual ethical norms and social stigma induce people … subjective probabilities of being penalised according to the rank dependent utility theory, and (2) Tax payers' beliefs about … utility theory. The model explains data 53% better than pure random choices and predicts hours worked in the regular economy …

income. Similarly, weak evidence of income hedging runs against standard portfolio theory. We link these two puzzles by …

Diversification is a fundamental concept in economics, decision theory, and finance, but the way in which it is … children apply it as a choice heuristic. We report on results of an experiment that tests whether children diversify in a …