The psychological basis for rank-dependent probability weighting, and for an inverse-S probability weighting function (PWF) in particular, has often been questioned. I examine the existence and shape of the PWF in a model allowing for optimism/pessimism over probability distributions and for...

Loss aversion, risk aversion, and the probability weighting function (PWF) are three central concepts in explaining decisionmaking under risk. I examine interlinkages between these concepts in a model of decisionmaking that allows for loss averse/tolerant stochastic reference dependence and...

We study a model of political competition between two candidates with two orthogonal issues, where candidates are office motivated and committed to a particular position in one of the dimensions, while having the freedom to slect (credibly) any position on the other dimension. We analyse two...

If fertility reflects the choice of households, results of their choice (duration between successive births and health of the children) cannot be considered to be randomly determined. While most existing studies of child health tend to overlook the effects of fertility selection on child health,...

Using data for 1995, 1997 and 2001 and a sophisticated selectivity correction econometric methodology, this paper explores human capital allocation and returns in four labor market sectors in Bulgaria. Our results indicate that while in the aftermath of structural reform highly productive...