Prospect Theory: For Risk and Ambiguity, provides a comprehensive and accessible
textbook treatment of the way decisions are made both when we have the statistical …

We develop a structural econometric model to estimate risk preferences from data on
deductible choices in auto insurance contracts. We account for adverse selection by …

We estimate individual risk attitudes using controlled experiments in the field in Denmark.
The experiments were carried out across Denmark using a representative sample of 253 …

Define the riskiness of a gamble as the reciprocal of the absolute risk aversion (ARA) of an
individual with constant ARA who is indifferent between taking and not taking that gamble …

The power family, also known as the family of constant relative risk aversion (CRRA), is the
most widely used parametric family for fitting utility functions to data. Its characteristics have …

Despite the large literature on anomalies in risky choice, very little research has explored the
relevance of these insights in real insurance markets. This paper uses new data on …

An Operational Measure of Riskiness | Journal of Political Economy: Vol 117, No 5 Skip to
main content University of Chicago Press Journals logo University of Chicago Press Journals …

We model a risk-averse newsvendor's decision-making behavior with some commonly used
classes of utility functions within the expected utility theory (EUT) framework. Under fairly …

A growing literature reports the conclusions that:(a) expected utility theory does not provide
a plausible theory of risk aversion for both small-stakes and large-stakes gambles; and (b) …

Multiple price lists have emerged as a simple and popular method for eliciting risk
preferences. Despite their popularity, a key downside of multiple price lists has not been …