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extent observed team decisions under risk are actually consistent with the principles of rational choice, specifically the … principles of Expected Utility Theory (EUT) and of Portfolio Selection Theory (PST). The experiment is performed with individuals … and teams. We find almost no evidence for the greater compliance of team decisions than of individual decisions with the …
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Suppose that a group of agents having divergent expectations can share risks efficiently. We examine how this group should behave collectively to manage these risks. We show that the beliefs of the representative agent is in general a function of the group.s wealth level, or equivalently, that...
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