We investigate whether violations of canonical axioms of choice under risk are mistakes or a manifestation of true preferences. First, we elicit axiom and gamble preferences and then allow subjects to revise their potentially conflicting preferences. Among the behavioral patterns that allow for...

We analyze the risk levels chosen by agents who have private information regarding their quality, and whose performance will be judged and rewarded by outsiders. Assume that risk choice is observable. Agents will choose risk strategically to enhance their expected reputations. We show that...

We analyze the risk levels chosen by agents who have private information regarding their quality, and whose performance will be judged and rewarded by outsiders. Assume that risk choice is observable. Even risk-neutral agents will choose risk strategically to enhance their expected reputation....

This paper analyses corporate risk choice when firms and their managers have private information regarding firm quality. Managers – representing themselves or shareholders – have a short time horizon and wish to boost the firm’s reputation in the market. Investors observe the firm’s...

One of the most complex systems is the human brain whose formalized functioning is characterized by decision theory. We present a quot;Quantum Decision Theoryquot; of decision making, based on the mathematical theory of separable Hilbert spaces. This mathematical structure captures the effect of...

Post-purchase consumer regret includes outcome regret and process regret. The aim of present study was to examine relationships between consumer regret, as indexed by the Post-Purchase Consumer Regret Scale (PPCR scale), attentional, motor and non-planning impulsivity, as measured by the Barratt...

We propose a new parametrization of Quantum Decision Theory (QDT), based on Rank Dependent Utility Theory (RDU). Using experimental data made of choices between pairs of lotteries, we compare QDT with "classical" decision theories, RDU and Cumulative Prospect Theory (CPT). At the aggregate...

Abstract Background The role of impulsivity in post-purchase consumer regret is unclear and intriguing because of the negative emotions that underlie both constructs. It is particularly important to examine the impact of impulsivity on the relationship between regret and the Emotionality...

Post-purchase consumer regret includes outcome regret and process regret. The aim of present study was to examine relationships between consumer regret, as indexed by the Post-Purchase Consumer Regret Scale (PPCR scale), attentional, motor and non-planning impulsivity, as measured by the Barratt...

If we reassess the rationality question under the assumption that the uncertainty of the natural world is largely unquantifiable, where do we end up? In this article the author argues that we arrive at a statistical, normative, and cognitive theory of ecological rationality. The main casualty of...