4 found
  1.  34
    Common ratio using delay.Manel Baucells & Franz H. Heukamp - 2010 - Theory and Decision 68 (1-2):149-158.
    We present an experiment in which we add a common delay in a choice between two risky prospects. The results show that delay produces the same change in preferences as in the well-documented common ratio effect in risky lotteries. The added common delay acts as if the probabilities were divided by some common ratio. Moreover, we show that there is a strong magnitude effect, in the sense that the effect of delay depends on the magnitude of the outcome. The results (...)
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  2.  25
    Introduction to the special issue.Manel Baucells, Antoni Bosch-Domènech & Franz H. Heukamp - 2010 - Theory and Decision 68 (1-2):1-4.
  3. Stability of risk preferences and the reflection effect of prospect theory.Manel Baucells & Antonio Villasís - 2010 - Theory and Decision 68 (1-2):193-211.
    Are risk preferences stable over time? To address this question we elicit risk preferences from the same pool of subjects at two different moments in time. To interpret the results, we use a Fechner stochastic choice model in which the revealed preference of individuals is governed by some underlying preference, together with a random error. We take cumulative prospect theory as the underlying preference model (Kahneman and Tversky, Econometrica 47:263–292, 1979; Tversky and Kahneman, Journal of Risk and Uncertainty 5:297–323, 1992). (...)
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  4.  53
    Evaluating Time Streams of Income: Discounting What? [REVIEW]Manel Baucells & Rakesh K. Sarin - 2007 - Theory and Decision 63 (2):95-120.
    For decisions whose consequences accrue over time, there are several possible techniques to compute total utility. One is to discount utilities of future consequences at some appropriate rate. The second is to discount per-period certainty equivalents. And the third is to compute net present values (NPVs) of various possible streams and to then apply the utility function to these net present values. We find that the best approach is to first compute NPVs of various possible income streams and then take (...)
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