The body of literature on the relationship between risk aversion and wealth is extensive. However, little attention has been given to examining how future realizations of wealth might affect (current) risk decisions. Using paired lottery choice experiments and exposing subjects experimentally to imagined future wealth frames, I find that individuals are more risk-seeking if they are asked to im...

Whereas some people regard models of risky decision making as if they were statistical summaries of data collected for some other purpose, I think of models as theories that can be tested by experiments. I argue that comparing theories by means of global indices of fit is not a fruitful way to evaluate theories of risky decision making. I argue instead for experimental science. That is, test cr...

T experiment tested two behavioral properties of risky decision making—gain-loss separability (GLS) and coalescing. Cumulative prospect theory (CPT) implies both properties, but the transfer of attention exchange model (TAX) violates both. Original prospect theory satisfies GLS but may or may not satisfy coalescing, depending on whether editing rules are assumed. A configural form of CPT propos...

Many models of judgment and decision-making posit distinct cognitive and emotional contributions to decision-making under uncertainty. Cognitive processes typically involve exact computations according to a cost-benefit calculus, whereas emotional processes typically involve approximate, heuristic processes that deliver rapid evaluations without mental effort. However, it remains largely unknow...