Add to ORKGAffective decision-making is a strategic model of choice under risk and uncertainty where we posit two cognitive processes — the “rational” and the “emotional” process. Observed choice is the result of equilibrium in this intrapersonal game. As an example, we present applications of affective decision-making in insurance markets, where the risk perceptions of consumers are endogenous. We derive the axiomatic foundation of affective decision making, and show that affective decision making is a model of ambiguity-seeking behavior consistent with the Ellsberg paradox
In real life, decisions are often made under ambiguity, where it is difficult to estimate accuratel...
This paper argues that Ellsberg’s and Shackle’s frameworks for discussing the limits of the (subject...
How do decision makers act and how should they act when confronted with uncertainty ? Economic behav...
Affective decision-making is a strategic model of choice under risk and uncertainty where we posit tw...
Affective decision-making is a strategic model of choice under risk and uncertainty where we posit tw...
Optimism-bias is inconsistent with the independence of decision weights and payoffs found in models o...
In a version of the Ellsberg Paradox, the decision-maker is confronted with two urns, each containin...
Both sensorimotor and economic behavior in humans can be understood as optimal decisionmaking under ...
We replicate the essentials of the Huettel et al. (2006) experiment on choice under uncertainty with...
Ambiguity aversion-the tendency to avoid options whose outcome probabilities are unknown-is a ubiqui...
We present a simple model where preferences with complexity aversion, rather than ambiguity aversion...
Paradoxes are useful in science because they hint at errors or inconsistencies in our models of the ...
Even though Daniel Ellsberg’s 1961 article “Risk, ambiguity and the Savage axioms” is well-known and...
The Ellsberg paradox demonstrates that peoples belief over uncertain events might not be representab...
In real life, decisions are often made under ambiguity, where it is difficult to estimate accuratel...
This paper argues that Ellsberg’s and Shackle’s frameworks for discussing the limits of the (subject...
How do decision makers act and how should they act when confronted with uncertainty ? Economic behav...
Affective decision-making is a strategic model of choice under risk and uncertainty where we posit tw...
Affective decision-making is a strategic model of choice under risk and uncertainty where we posit tw...
Optimism-bias is inconsistent with the independence of decision weights and payoffs found in models o...
In a version of the Ellsberg Paradox, the decision-maker is confronted with two urns, each containin...
Both sensorimotor and economic behavior in humans can be understood as optimal decisionmaking under ...
We replicate the essentials of the Huettel et al. (2006) experiment on choice under uncertainty with...
Ambiguity aversion-the tendency to avoid options whose outcome probabilities are unknown-is a ubiqui...
We present a simple model where preferences with complexity aversion, rather than ambiguity aversion...
Paradoxes are useful in science because they hint at errors or inconsistencies in our models of the ...
Even though Daniel Ellsberg’s 1961 article “Risk, ambiguity and the Savage axioms” is well-known and...
The Ellsberg paradox demonstrates that peoples belief over uncertain events might not be representab...
In real life, decisions are often made under ambiguity, where it is difficult to estimate accuratel...
This paper argues that Ellsberg’s and Shackle’s frameworks for discussing the limits of the (subject...
How do decision makers act and how should they act when confronted with uncertainty ? Economic behav...