Optimism bias is inconsistent with the independence of decision weights and payoffs found in models of choice under risk, such as expected utility theory and prospect theory. Hence, to explain the evidence suggesting that agents are optimistically biased, we propose an alternative model of risky choice, affective decision making, where decision weights—which we label affective or perceived risk...

Standard search theory assumes that individuals know, with certainty, how they compare to competing searchers in terms of ability. In contrast, we hypothesize that searchers are uncertain about relative ability, with important implications for search behavior. We test our hypotheses in a laboratory experiment. The first main finding is that people are substantially uncertain about whether they ...

Abstract Introduction Vulvar lichen sclerosus (VLS) often presents with intense pruritus and recurrent painful lesions, negatively impacting quality of life and, potentially, the ability to engage in sexual penetration. VLS treatment ranges from topical steroids systemic antipruritic agents. No studies have yet characterized how concurrent dysfunction impacts treatment. Objective The objective ...

It’s a well known empirical fact that actual option prices show persistent and systematic deviations from Black-Scholes option values. While a substantial number of enhancements have been proposed in the literature, these approaches typically leave investor’s preferences towards risk unmodified. Recently, empirical studies using option prices find support for non-concave utility functions propo...

Numerous laboratory studies find that minor nuances of presentation and description change behavior in ways that are inconsistent with standard economic models. How much do these context effects matter in natural settings, when consumers make large, real decisions and have the opportunity to learn from experience? We report on a field experiment designed to address this question. A South Africa...

Abstract. Seasonal forecasts have the potential to substantially improve water management particularly in water-scarce regions. However, global seasonal are usually not directly applicable as they provided at coarse spatial resolutions of best 36 km and suffer from model biases drifts. In this study, we therefore apply a bias-correction spatial-disaggregation (BCSD) approach precipitation, temp...

a r t i c l e i n f o a b s t r a c t JEL classification: D01 D11 Keywords: Incomplete preferences Indifference Sequential rationality Revealed preference Incommensurability We use an agent's strict preferences to define indifference and incompleteness relations that identify the sequences of trades that are rational to undertake. If an agent makes sequences of trades of options labeled indiffe...

BACKGROUND Platinum nanomaterial is one of the significant noble metal catalysts, and the interaction of platinum with microbe is one of the key factors in influencing the size and the distribution of the platinum nanoparticles on the microbial biomass. Some properties of Pt(IV) adsorption and reduction by resting cells of Bacillus megatherium D01 biomass have once been investigated, still the ...

859 which means that x a , x a , x a are linearly independent mod ~ P (x) as specified by Lemma 1.1 in the form given by [13], since in the LFSR/SR structure the zeroth cell of the LFSR part is indexed with 0. 2) General LFSM and groups of cells with indexes greater than d 01. In this case set A = fa 1 ; a 2 ;. .. ; a k g is such that a i d, 1 i k, that is, no cell lies within the LFSM part of ...