In this paper we present a dynamic discrete-time model that allows to investigate the impact of risk-aversion in an …-time limit of our model with no uncertainty and no risk-aversion. Focusing on the continuous-time limit of the infinite horizon … inversely related to the degrees of uncertainty and risk-aversion. However, the effect of uncertainty and risk …

been empirically investigated whether uncertainty-averse decision makers indeed exhibit such preferences. Here, we examine …

’ new product decisions. A set of hypotheses is developed using regulatory focus theory, which identifies basic motivational … differences in individuals (i.e., promotion vs. prevention focus) and their effects on decision-making. The hypotheses examine the … decision-making task, while allowing the phenomena of interest to be isolated and tested. Results show that when dyads share …

theorems of the insurance and finance theory. As recently pointed out by Segal and Spivak (1990), risk aversion of the first …According to a revised definition of Samuelson, a risk-averse agent is called a coward whenever he refuse even a small … order is a sufficient condition for that. Nevertheless, the attitude toward the risk is not the only culprit of the …

We use the Emmy Award-winning game show Cash Cab to study decision-making in a risky framework. This is a unique … environment because, unlike other studies on risk-aversion, players participate individually or in teams varying in number from … two to five. This creates a natural laboratory to measure performance and risk aversion conditional upon the size of the …

independent of duration, simple aggregation will nonetheless lead to the inference that the hazard function is state …

, Cumulative Prospect Theory posits a weighting function through which probabilities are transformed into decision weights. An … independent of duration, simple aggregation will nonetheless lead to the inference that the hazard function is state … motivate us to consider the question of possible aggregation bias in the realm of choice under uncertainty. In particular …

engaging in the activity causes others to offer larger rewards. Our theory yields the testable prediction that such effects are …