interdependence of individual risk attitudes and social preferences in form of inequality aversion as two decisive behavioral … determinants in such contexts. Our model and the data demonstrate that individual risk aversion is attenuated when lagging behind …

that decision-makers tend to form beliefs that justify the previous investment decisions. A stronger risk taking motivates … more optimistic beliefs, in particular if it leads to losses. Sharing the responsibility for the risk taking reduces the … bias in the beliefs and this helps decision-makers to reduce the risk taking and limit the losses. The results suggest that …

We provide a model that can explain empirically relevant variations in confidence and risk taking by combining horizon …-dependent risk aversion (“anxiety”) and selective memory in a Bayesian intrapersonal game. In the time series, overconfidence is more … prevalent when actual risk levels are high, while underconfidence occurs when risks are low. In the cross section, more anxious …

weak preference ordering. For choice under risk (resp. uncertainty), preferences are assumed to be represented by the … objectively (resp. subjectively) expected value of a von Neumann-Morgenstern utility function. For choice under risk, this implies …

). Decision Utility Theory proposes straightforward risk measures, presents a simple explanation of risk attitudes by using the …

This short paper demonstrates that the claim of Cumulative Prospect Theory (CPT) that people are risk seeking for loss … gives a power factor for losses of less than 1. This would mean that people are risk seeking for loss prospects. However …, makes the value function convex, which indicates risk aversion. It follows that people are generally risk averse both for …

choice between risky and ambiguous Ellsberg urns, we let them choose between a safe option and a risky lottery, whose risk is …, subjects can reduce or even eliminate the ambiguity and turn the decision situation into one of risk. Under the assumption that … request more information. Moreover, we investigate whether the relation between attitudes towards risk and ambiguity is linked …