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This book tries to sort out the different meanings of uncertainty and to discover their foundations. It shows that uncertainty can be represented using various tools and mental guidelines. Coverage also examines alternative ways to deal with risk and risk attitude concepts. Behavior under...
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experiments. Contrary to the traditional view of expected utility theory, the choices can be explained in large part by previous … outcomes or surpassed by favorable outcomes. Our results point to reference-dependent choice theories such as prospect theory …
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The St. Petersburg paradox is one of the oldest challenges of expected value theory. Thus far, explanations of the …
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We conduct an experiment in which we elicit subjects’ beliefs over opponents’ behavior multiple times for a given game …
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