Behavioral lab experiments have uncovered a wealth of evidence that people do not approach risk in accord with economics’ workhorse theory of “expected utility”. For example, found that demand tripled with ’simple’ contract reformulation in Peru that should not have mattered from a standard expected utility perspective.
Behavioral lab experiments have uncovered a wealth of evidence that people do not approach risk in accord with economics’ workhorse theory of “expected utility”. For example, found that demand tripled with ’simple’ contract reformulation in Peru that should not have mattered from a standard expected utility perspective.
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