Models of Risk Preferences - Descriptive and Normative Challenges

Cumulative Prospect Theory is a popular model of risk preferences in behavioral economics and generally proposed as a better descriptive model than alternatives, and as an inferior normative model to guide risky decisions. Models of Risk Preferences collects studies that critically review these claims from the perspective of experimental economics. The Research in Experimental Economics series focuses on experimental and empirical investigations into both the economic effects of the law and how economic theories can explain the behavior of individuals within a legal system.