This paper provides a simple explanation for systematic violations of expected utility theory in Allais-type tasks. We … demonstrate that the main reason our participants violate expected utility theory is aversion to receiving a zero outcome, and not … alternatives to expected utility theory. None has incremental explanatory power beyond the zero effect …

using a dynamic choice model that allows decision makers to both discount the future (be myopic) and be subject to random …

Popular models for decision making under ambiguity assume that people use not one but multiple priors. This paper is a …

elicit individual risk preferences according to Cumulative Prospect Theory. Applying a latent class model to the choice data …' tastes in typical contract attributes of health insurances and to investigate their relationship with individual risk … helps consumers to choose contracts, which are in line with their individual risk preferences. Our results reveal valuable …

The question of how to measure and classify people's risk preferences is of substantial importance in the field of …

show that incentives affect decision making not only by affecting the payoffs of different outcomes but also by distorting … information processing, which in turn affects how decision-makers see the relative likelihood of different outcomes. This suggests …

(EU) theory (a purely mathematical theory based on axioms) and Expected Utility models (EU theory plus a given economic … the decision maker has a single binary preference relation comparing probability distributions over final wealth levels … theory plus consequentialism is referred to as the standard EU model. It is argued that most of the critique against EU is …

This paper examines the impact of a commonly experienced adverse cognitive state on decision making under uncertainty …. Specifically, we administer an at-home sleep restriction protocol combined with random assignment to the time-of-day for decision … behavioral results are that sleepy subjects are more likely to make a Bayesian inaccurate decision and more likely to make …