We report results from experimental first-price, sealed-bid, all-pay auctions for a good with a common and known value. We observe bidding strategies in groups of two and three bidders and under two extreme information conditions. As predicted by the Nash equilibrium, subjects use mixed...

This research aimed to replace the pairwise comparison function used in Leoneti [2016] with a new function inspired on the exponential model of prospect theory and to perform a comparative analysis to verify the hypothesis that a better performance of the utility function would be possible from...

We present a new theory of decision under uncertainty: third-generation prospect theory (PT3). This retains the predictive power of previous versions of prospect theory, but extends that theory by allowing reference points to be uncertain while decision weights are specified in a rank-dependent...

Looking at the evolution of international wine trade over the last five years, the reduced growth rate and the varied performance of suppliers raise many research questions, at the micro- and macro-level. At the micro-level, research needs emerge regarding understanding consumer preferences,...

We adopt a risk-taking capability perspective to study the determinants of risk-taking behavior. We introduce the concept of “risk-taking capabilities”—absorptive capacity, network resources, and organizational slacks—arguing that recognition of threat and risk-taking capabilities will...

Leerstand auf dem Markt für Wohnimmobilien kann verschiedene Ursachen haben. In der Literatur gibt es eine Reihe von Ansätzen, um die Zusammenhänge, die zu Leerstand führen, zu beschreiben. In diesem Beitrag werden die grundlegenden Wirkungsmechanismen im Rahmen des Standardmarktmodells, der...

I test the hypothesis that investors evaluate stocks based on the prospect theory value of the distribution of past returns. Because some investors tilt towards stocks with high prospect theory value, these stocks become overvalued and earn low subsequent returns. During bubbles this effect...

We obtain rich measurements of risk preferences for 2939 subjects across 30 countries, and use the data to paint a picture of the distribution of risk preferences across the globe using structural equation models. Reference-dependence and likelihood-dependence are found to be important...

This paper overviews the theoretical and empirical research on behavioral biases and their influence in the literature. To provide a systematic exposition, we present a unified framework that takes the reader through an original taxonomy, based on the reviews of relevant authors in the field. In...