Expected utility theory (EUT) is currently the standard framework which formally defines rational decision-making under … behaviour under utility theory is incompatible with scarcity of resources, making behaviour consistent with EUT irrational and …

explained. We also present estimates for risk and stochasticity parameters; the former are not correlated across mechanisms, but …

confidence and ambiguity attitudes in individual decision making. Different ambiguity settings not only can be determined by the … lack of information in possible scenarios completely “external” to the decision-maker, but can also be a consequence of the … decision maker’s ignorance about her own characteristics or performance and, thus, deals with confidence. We design a …

specification includes two parameters: one for ambiguity attitudes and another for risk attitudes. We also estimate a three …

utility all predict unequivocally that risk-averse decision makers (DMs) will avoid the 50 - 50 urn that exhibits the highest … experiment where the decision maker draws twice with replacement in the typical Ellsberg two-color urns, but with a different … risk conceivable, while risk-seeking DMs do the opposite. However, we observe a substantial number of violations in the …

under the expected utility theory (EUT) are somewhat subject to context. Other findings imply that the risk premium (RP), as …The present paper introduces a theoretical framework through which the degree of risk aversion with respect uncertain … introduces the main elements of the duality theory (DT) in economics. Next, it proposes the context of IUFs as a suitable …

in the domain of risk. We find that many individuals prefer mixtures of lotteries in ways that systematically rule out … task. We find that a preference to mix is positively correlated with behavior from repeated discrete choice tasks. Risk …

toward multiple‐prior uncertainties in terms of ambiguity and its corresponding compound risk. Our findings point to a shared …