Abstract Higher-order risk preferences are important determinants of economic behavior. We apply insights from behavioral economics: we measure higher-order for pure gains and losses. find a reflection effect not only second-order preferences, as did Kahneman Tversky (1979), but also preferences: aversion, prudence intemperance much more risk-loving imprudence temperance These findings at odds ...

BACKGROUND Selecting treatment for clinically localized prostate cancer remains an ongoing challenge. Previous decision analyses focused on a hypothetical patient with average preferences, but preferences differ for clinically similar patients, implying that their optimal therapies may also differ. METHODS A decision model was constructed comparing 4 treatments for localized prostate cancer: ...

Testosterone is positively associated with risk-taking behavior in social domains (e.g., crime, physical aggression). However, the scant research linking testosterone to economic risk preferences presents inconsistent findings. We examined the relationship between endogenous testosterone and individuals' economic preferences (i.e., risk preference, ambiguity preference, and loss aversion) in a ...

A key component of economic decisions is the integration information about reward outcomes and probabilities in selecting between competing options. In many species, risky choice influenced by magnitude available outcomes, probability success possibility extreme outcomes. Chimpanzees are generally regarded to be risk-seeking. this study, we examined two aspects chimpanzees' risk preferences: fi...

We test whether induced mood states have an effect on elicited risk and time preferences in a conventional laboratory experiment. We jointly estimate risk and time preferences and find that subjects induced into a negative mood exhibit economically significant higher risk aversion than those in the control treatment. Those in the positive mood treatment exhibit even higher risk aversion. We fin...

This paper examines the impact of management preferences on optimal futures hedging strategy and associated performance. Applying an expected utility hedging objective, the optimal futures hedge ratio is determined for a range of preferences on risk aversion, hedging horizon and expected returns. Empirical results reveal substantial hedge ratio variation across distinct management preferences a...

The purpose of this note is to compute the probability of logrolling for three different probabilistic cultures. The primary finding is that the restriction of preferences to be in accord with the condition of separable preferences creates enough additional structure among voters’ preference rankings to create an increase in the likelihood that a Condorcet winner will exist with both IC and IAC...

This paper describes a method for planning with rich qualitative, temporally extended preferences (QTEPs) using lookahead heuristics inspired by those employed in state-of-the-art classical planners. Key to our approach is a transformation of the planning domain into an equivalent but simplified planning domain. First, compound preference formulae are transformed into simpler, equivalent prefer...

We consider voting over combinatorial domains, where alternatives are binary tuples. We assume that votes are specified as conditionally lexicographic preferences, or LP trees. We study aggregation problems of LP tree votes for several positional scoring rules. Our main goal is to demonstrate that answer-set programming can be effective in solving the winner and the evaluation problems for inst...

This article tries to explain the exceptional levels of knowledge creation in certain industrial clusters, levels that are seemingly higher than what is implied by the usual models of atomistic agents who do not internalize externalities. For this purpose, we introduce reference-dependent utility into an OLG model of an industrial cluster where agents allocate resources between consumption and ...