We develop a nonparametric method, called Generalized Restriction of Infinite Domains
(GRID), for testing the consistency of budgetary choice data with models of choice under risk …

Despite the fact that conceptual models of individual decision making under risk are
deterministic, attempts to econometrically estimate risk preferences require some …

Structural methods to estimate preferences for decisions under risk often perform poorly
when predicting new decisions out of sample. We compare standard structural methods to a …

Experiments have identified a number of well-known violations of expected utility theory,
giving rise to alternative models of choice under uncertainty, all of which are able to explain …

Experimental work on preferences over risk has typically considered choices over a small
number of discrete options, some of which involve no risk. Such experiments often …

Most theories of decision-making under risk imply deterministic choice, yet actual choice
appears to be stochastic, the resulting discrepancy being attributed to 'error'. This paper …

Developments in the theory of risk require yet another evaluation of the behavioral validity of
the independence axiom. This axiom plays a central role in most formal statements of …

The endowment effect has been widely documented. Recent models of reference-
dependent preferences indicate that expectations play a prominent role in the presence of …

There is widespread interest in measuring risk attitudes and incorporating such measures
into broader econometric analyses. We consider three elicitation procedures currently in …

Experiments on decision-making show that, when people evaluate risk, they often engage in
“narrow framing”: that is, in contrast to the prediction of traditional utility functions defined …