long horizons. We present an experiment comparing decision making under certainty, risk, and ambiguity, over a shorter … lifecycle. Results show that behavior in the ambiguity treatment is markedly different than in the risk condition and it is …

rather than by the realized outcomes of the risk. The finding has implications for theoretical models of decision …We examine whether prior exposure to environments with varying degrees of risk affects individuals' risk …-taking behavior. In a laboratory setting, subjects were first exposed to high, moderate, or low-risk environments. We then elicited …

Most textbook finance literature assumes risk to be the standard deviation of returns (volatility), which is not only … is consistent with investors’ actual perception of risk. Our method is presenting investors return distributions with … different risk characteristics for which they have to state their perceived risk and make investment decisions. Our results hint …

The paper examines in the laboratory how risk-taking situations are affected by the conditions of observing other …

Most theories of risky choice postulate that a decision maker maximizes the expectation of a Bernoulli (or utility or … useful for out-of-sample prediction. Nor do we find practical applications of Bernoulli functions in major risk … potentially observable opportunities rather than on unobservable Bernoulli functions. -- expected utility ; risk aversion ; St …

take risk as measured by the general risk question. We demonstrate that this disposition, which we call risk conception, is … strongly associated with optimism, a stable facet of personality, and that it predicts real-life risk taking. The general risk … question captures this disposition alongside pure risk preference. This likely contributes to the predictive power of the …

take risk as measured by the general risk question. We demonstrate that this disposition, which we call risk conception, is … strongly associated with optimism, a stable facet of personality and that it predicts real-life risk taking. The general risk … question captures this disposition alongside pure risk preference. This enlightens why the general risk question is a better …

In subjective expected utility (SEU) the decision weights people attach to events are their beliefs about the …

We use a laboratory experiment to identify the impact of risk in the private and public dimensions of social … to others. We find a detrimental effect of risk on public good provision when returns in both dimensions are risky and … positively correlated or independent. A negative correlation limits the downside risk and leads to more stable social investments …