Decisions under unpredictable losses: An examination of the restated diversification principle
An experimental test of the descriptive adequacy of the restated diversification principle is presented. The principle postulates that risk-averse utility maximizers will pool risks for their mutual benefit, even if information is missing about the probabilities of losses. It is enough for people to...
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| Format: | Article |
| Language: | English |
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Cambridge University Press
2007-10-01
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| Series: | Judgment and Decision Making |
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| Online Access: | https://www.cambridge.org/core/product/identifier/S1930297500000620/type/journal_article |