We experimentally explore decision-making under uncertainty using a framework that decomposes uncertainty into three distinct layers: (1) physical uncertainty, entailing inherent randomness within a given probability model, (2) model uncertainty, entailing subjective uncertainty about the...

This paper investigates the making of optimal regulatory standard in a game theoretical model. We demonstrate that the optimal regulatory standard is robust and irrelevant to interest group pressure under different market structures. Stated differently, the source of rulemaking outcome variation...

We propose simple behavioral definitions of comparative uncertainty aversion for a single agent towards different sources of uncertainty. Our definitions allow for the comparison of utility curvature towards different sources if the agent's choices satisfy subjective expected utility towards...

We experimentally explore decision-making under uncertainty using a framework that decomposes uncertainty into three distinct layers: (1) physical uncertainty, entailing inherent randomness within a given probability model, (2) model uncertainty, entailing subjective uncertainty about the...