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. In other words, a person holding a lottery ticket may prefer a delayed resolution of risk due to positive anticipatory … emotions. This conjecture is tested in an experiment with real lottery tickets. We show that our theoretical considerations may …
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A continuing goal of experiments is to understand risky decisions when the decisions are important. Often a decision's importance relates to the magnitude of the associated monetary stake. Khaneman and Tversky (1979) argue that risky decisions in high stakes environments can be informed using...
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regularities in stochastic choice, risk attitudes, and experimental design. The model delivers new predictions that are confirmed …
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economic models of decisions under risk. It describes the robust observation of frequent "standard reversals" where long … choice and risk aversion, without invoking any behavioral bias. The original phenomenon arises from stochastic choice and a … higher risk aversion strengthens its reversal. Surprisingly, our analysis implies that the magnitude of the original …
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