This article reviews recent developments in the economic theory of individual decision
making under risk. Since the 1950s it has been known that individual choices violate the …

Several independent lines of research bear on the question of why individuals avoid
decisions by postponing them, failing to act, or accepting the status quo. This review relates …

This article documents the economic relevance of measuring cognitive uncertainty: people's
subjective uncertainty over their ex ante utility-maximizing decision. In a series of …

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 …

This paper addresses the effects of the anticipation of regret on decision making under
uncertainty. Regret is a negative, cognitively based emotion that we experience when …

When individuals choose among risky alternatives, the psychological weight attached to an
outcome may not correspond to the probability of that outcome. In rank-dependent utility …

This article presents a new theory of subjective probability according to which different
descriptions of the same event can give rise to different judgments. The experimental …

Decision research has only recently started to take seriously the role of emotions in choices
and decisions. Regret is the emotion that has received the most attention. In this article, we …

How do workers make wage comparisons? Both an experimental study and an analysis of
16,000 British employees are reported. Satisfaction and well‐being levels are shown to …

During the last 25 years, prospect theory and its successor, cumulative prospect theory,
replaced expected utility as the dominant descriptive theories of risky decision making …