The present study reviews the literature about dynamic decision-making and judgment of low-probability, high-consequence events. The specific features of this situation under risk and uncertainty imply an anomaly: while the single probability of an event with high negative consequences may be...

Prospect theory, widely used descriptively for decisions under both risk and certainty, presumes concave utility over “gains” and convex utility over “losses”; a pattern widely seen in lottery tasks. Although such gain-loss asymmetry is also widely used to model riskless choices, limited...

Belief elicitation is important in many different felds of economic research. We show that how a researcher elicits such beliefs-in particular, whether the belief is about the participant's opponent, an unrelated other, or the population of others-affects the processes involved in the formation...