People's decisions and judgments are disproportionately swayed by improbable but
extreme eventualities, such as terrorism, that come to mind easily. This article explores …

We conduct an experiment in which subjects face the same questions repeated multiple
times, with repetitions of two types:(1) following the literature, the repetitions are distant from …

Many alternative theories have been proposed to explain violations of expected utility (EU)
theory observed in experiments. Several recent studies test some of these alternative …

Many different functional forms have been suggested for both the value function and
probability weighting function of Cumulative Prospect Theory (Tversky and Kahneman …

A recurrent problem in experimental eco-nomics is that of ensuring that subjects have an
incentive to give considered and truthful responses. One common experimental design is to …

Recent experimental studies suggest that risk aversion is negatively related to cognitive
ability. In this paper we report evidence that this relation may be spurious. We recruit a large …

The random lottery incentive system is widely used in experimental economics to motivate
subjects. This paper investigates its validity. It reports three experiments which compare …

Recent papers by Harless and Camerer (1994) and Hey and Orme (1994) have employed
two rather different models of errors in decision making under uncertainty. The present …

We present a new theory of decision under uncertainty: third-generation prospect theory (PT
3). This retains the predictive power of previous versions of prospect theory, but extends that …

Choice under risk has a large stochastic (unpredictable) component. This chapter examines
five stochastic models for binary discrete choice under risk and how they combine with …