Individuals in most industrialized countries have to make investment decisions throughout their adult life span to save for their retirement. These decisions substantially affect their living standards in old age. Research on cognitive aging has already demonstrated several changes in cognitive...

This paper discusses a recently published handbook on neuroeconomics (Glimcher et al., 2009H) and extends the discussion to reasons why this newly emerging discipline should be of interest to behavioral accounting researchers. We evaluate the achieved and potential contribution of neuroeconomics...

This paper discusses solutions derived from lottery experiments using two alternative assumptions: that people perceive wealth changes as absolute amounts of money; and that people consider wealth changes as a proportion of some reference value dependant on the context of the problem under...

This paper presents a review of adaptation concepts at the evolutionary, environmental, neural, sensory, mental and mathematical levels, including Helson's and Parducci's theories of perception and category judgments. Two kinds of adaptation can be clearly distinguished. The first, known as...

Researchers describing the discovery of something they are not equipped to fully understand run the risk that their reach will exceed their grasp. And so, as mere enthusiastic newcomers to the study of author Rex Stout, we will limit ourselves to: (1) reporting that we have run across an early...

The paper critically reviews the impact of models of cognitive architecture on economics. A historical survey is provided that indicates the reasons for most economists' non-participation, as either producers or consumers, in the cognitive revolution. The remainder of the paper shows, partly by...

A probability weighting function w(p) for an objective probability p in decision under risk plays a pivotal role in Kahneman-Tversky's prospect theory. Although recent studies in econophysics and neuroeconomics widely utilized probability weighting functions, psychophysical foundations of the...

Risky health behaviors such as smoking, drinking alcohol, drug use, unprotected sex, and poor diets and sedentary lifestyles (leading to obesity) are a major source of preventable deaths. This chapter overviews the theoretical frameworks for, and empirical evidence on, the economics of risky...

Cumulative Prospect Theory (Kahneman, Tversky, 1979, 1992) holds that the value function is described using a power function, and is concave for gains and convex for losses. These postulates are questioned on the basis of recently reported experiments, paradoxes (gain-loss separability...