We propose a new measure of deviations from expected utility, given data on economic choices under risk and uncertainty …

We propose a new measure of deviations from expected utility, given data on economic choices under risk and uncertainty …

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 …

The present paper introduces a theoretical framework through which the degree of risk aversion with respect uncertain … prices can be measured through the context of the indirect utility function (IUF) using a lab experiment. First, the paper … framework for measuring price risk aversion through varying prices as opposed to varying payoffs, which has been common practice …

We implement an experiment to elicit subjects’ ambiguity attitudes in the spirit of Ellsberg’s three-color urn. The …