4 found
  1.  98
    Do Financial Professionals Behave According to Prospect Theory? An Experimental Study.Mohammed Abdellaoui, Han Bleichrodt & Hilda Kammoun - 2013 - Theory and Decision 74 (3):411-429.
    Prospect theory is increasingly used to explain deviations from the traditional paradigm of rational agents. Empirical support for prospect theory comes mainly from laboratory experiments using student samples. It is obviously important to know whether and to what extent this support generalizes to more naturally occurring circumstances. This article explores this question and measures prospect theory for a sample of private bankers and fund managers. We obtained clear support for prospect theory. Our financial professionals behaved according to prospect theory and (...)
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  2.  8
    Risk Aversion and the Value of Diagnostic Tests.Han Bleichrodt, David Crainich, Louis Eeckhoudt & Nicolas Treich - 2020 - Theory and Decision 89 (2):137-149.
    Diagnostic tests allow better informed medical decisions when there is uncertainty about a patient’s health status and, therefore, about the desirability to undertake treatment. This paper studies the relation between the expected value of diagnostic information and a patient's risk aversion. We show that the ex ante value of diagnostic information increases with risk aversion for diseases with low prevalence, but decreases with risk aversion for diseases with high prevalence. On the other hand, the ex post value of diagnostic information (...)
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  3.  27
    Nash Was a First to Axiomatize Expected Utility.Han Bleichrodt, Chen Li, Ivan Moscati & Peter P. Wakker - 2016 - Theory and Decision 81 (3):309-312.
    Nash is famous for many inventions, but it is less known that he, simultaneously with Marschak, also was the first to axiomatize expected utility for risk. In particular, these authors were the first to state the independence condition, a condition that should have been but was not stated by von Neumann and Morgenstern. Marschak’s paper resulted from interactions with several people at the Cowles Commission. We document unique letters and personal communications with Nash, Samuelson, Arrow, Dalkey, and others, making plausible (...)
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  4.  11
    Applications of Non-Expected Utility.Han Bleichrodt & Ulrich Schmidt - 2009 - In Paul Anand, Prasanta Pattanaik & Clemens Puppe (eds.), Handbook of Rational and Social Choice. Oxford University Press.