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  1. Individual vs. group decision-making: an experiment on dynamic choice under risk and ambiguity.Enrica Carbone, Konstantinos Georgalos & Gerardo Infante - 2019 - Theory and Decision 87 (1):87-122.
    This paper focuses on the comparison of individual and group decision-making, in a stochastic inter-temporal problem in two decision environments, namely risk and ambiguity. Using a consumption/saving laboratory experiment, we investigate behaviour in four treatments: individual choice under risk; group choice under risk; individual choice under ambiguity and group choice under ambiguity. Comparing decisions within and between decision environments, we find an anti-symmetric pattern. While individuals are choosing on average closer to the theoretical optimal predictions, compared to groups in the (...)
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  • An experimental test of a search model under ambiguity.Takao Asano, Hiroko Okudaira & Masaru Sasaki - 2015 - Theory and Decision 79 (4):627-637.
    The objective of this study is to design a laboratory experiment to explore the effect of ambiguity on a subject’s search behavior in a finite-horizon sequential search model. In so doing, we employ a strategy to observe the potential trend of reservation points that is usually unobserved. We observe that subjects behaving consistently across treatments reduce their reservation points in the face of ambiguity over point distribution. Our result is consistent with the theoretical implication obtained by Nishimura and Ozaki.
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  • Lottery- and survey-based risk attitudes linked through a multichoice elicitation task.Giuseppe Attanasi, Nikolaos Georgantzís, Valentina Rotondi & Daria Vigani - 2018 - Theory and Decision 84 (3):341-372.
    We analyze the results from three different risk attitude elicitation methods. First, the broadly used test by Holt and Laury, HL, second, the lottery-panel task by Sabater-Grande and Georgantzis, SG, and third, responses to a survey question on self-assessment of general attitude towards risk. The first and the second task are implemented with real monetary incentives, while the third concerns all domains in life in general. Like in previous studies, the correlation of decisions across tasks is low and usually statistically (...)
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  • Firm’s protection against disasters: are investment and insurance substitutes or complements?Giuseppe Attanasi, Laura Concina, Caroline Kamaté & Valentina Rotondi - 2020 - Theory and Decision 88 (1):121-151.
    We use a controlled laboratory experiment to study firm’s protection against potential technological damages. The probability of a catastrophic event is known, and the firm’s costly investment in safety reduces it. The firm can also buy an insurance with full or partial refund against the consequences of the catastrophic event, which ultimately reduces the variance of the firm’s investment-in-safety lottery. The firm makes these two choices simultaneously, after observing the insurance contract proposed by an insurer who chooses this contract within (...)
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  • The strength of sensitivity to ambiguity.Robin Cubitt, Gijs van de Kuilen & Sujoy Mukerji - 2018 - Theory and Decision 85 (3-4):275-302.
    We report an experiment where each subject’s ambiguity sensitivity is measured by an ambiguity premium, a concept analogous to and comparable with a risk premium. In our design, some tasks feature known objective risks and others uncertainty about which subjects have imperfect, heterogeneous, information. We show how the smooth ambiguity model can be used to calculate ambiguity premia. A distinctive feature of our approach is estimation of each subject’s subjective beliefs about the uncertainty in ambiguous tasks. We find considerable heterogeneity (...)
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