A growing literature reports the conclusions that: (a) expected utility theory does not provide a plausible theory of risk aversion for both small-stakes and large-stakes gambles; and (b) this decision theory should be replaced with an alternative theory characterized by loss aversion. This paper explains that the arguments in previous literature fail to support these conclusions. Either concav...

Researchers commonly make dichotomous claims based on continuous test statistics. Many have branded the practice as a misuse of statistics and criticize scientists for widespread application hypothesis tests to tentatively reject (or not) depending whether p-value is below or above an alpha level. Although are rarely explicitly defended, we argue they play important epistemological pragmatic ro...