Small- and large-stakes risk aversion: Implications of concavity calibration for decision theory

DOI10.1016/j.geb.2005.08.001zbMath1151.91408OpenAlexW3124992686MaRDI QIDQ2466859

Vjollca Sadiraj, James C. Cox

Publication date: 16 January 2008

Published in: Games and Economic Behavior (Search for Journal in Brave)

Full work available at URL: https://doi.org/10.1016/j.geb.2005.08.001

zbMATH Keywords

expected utility theoryprospect theoryrisk aversionconcavity calibration

Mathematics Subject Classification ID

Decision theory (91B06) Individual preferences (91B08)

Related Items (15)

Subjective beliefs about the income distribution and preferences for redistribution ⋮ Risk aversion and expected utility of consumption over time ⋮ A parametric analysis of prospect theory's functionals for the general population ⋮ Elicitation using multiple price list formats ⋮ Is there a plausible theory for decision under risk? A dual calibration critique ⋮ Recall searching with and without recall ⋮ Risk aversion and expected-utility theory: a calibration exercise ⋮ Bargaining with a residual claimant: an experimental study ⋮ On the coefficient of variation as a criterion for decision under risk ⋮ Expected utility theory and prospect theory: One wedding and a decent funeral ⋮ Use of Insurance Against a Small Loss as an Incentive Strategy ⋮ Risk attitudes over small and large stakes recalibrated ⋮ Optimal inventory decisions for a risk-averse retailer when offering layaway ⋮ Risk aversion in the small and in the large: Calibration results for betweenness functionals ⋮ Do people maximize quantiles?

Cites Work

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• Auction market theory of heterogeneous bidders
• Selling to risk averse buyers with unobservable tastes
• Advances in prospect theory: cumulative representation of uncertainty
• Rejecting small gambles under expected utility
• Allocation Mechanisms and the Design of Auctions
• Optimal Auctions with Risk Averse Buyers
• Global Incentive Constraints in Auction Design
• A Theory of Auctions and Competitive Bidding
• Prospect Theory: An Analysis of Decision under Risk
• The Dual Theory of Choice under Risk
• Risk Aversion in the Small and in the Large

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