Affective Decision Making and the Ellsberg Paradox

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Anat Bracha; Donald J. Brown;
  • Subject: Ellsberg paradox, Schmeidler's axiom, Affective decision making, Variational preferences, Legendre-Fenchel conjugate | Affective choice, Endogenous risk perception, Insurance, Ellsberg paradox, Variational preferences, Ambiguity-seeking
    • jel: jel:G22 | jel:D01 | jel:D81

Affective decision-making is a strategic model of choice under risk and uncertainty where we posit two cognitive processes -- the "rational" and the "emotional" process. Observed choice is the result of equilibrium in this intrapersonal game. As an example, we present a... View more
  • References (40)
    40 references, page 1 of 4

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