All glossaries
Decision Making Under Risk & Uncertainty
Decisions under risk and uncertainty involve outcomes we can't be sure of. Sometimes we know the odds. Often we're working with incomplete information and a best guess. This area studies how people weigh those possibilities and choose between them.
The entries cover prospect theory, attitudes toward gains and losses, regret, and the way we judge probabilities. They also explain ambiguity aversion, a preference for known odds over unknown ones.
Definitions
- Action bias
- Adverse selection
- Allais Paradox
- Ambiguity aversion
- Ambiguity effect
- Behavioral Finance
- Behavioral Game Theory
- Certainty and possibility effects
- Certainty Effect
- Decision Utility
- Diminishing sensitivity
- Discounted Utility
- Disposition Effect
- Economic bubble
- Efficient Market Hypothesis
- Expectancy Theory
- Inertia
- Loss aversion
- Lottery incentive
- Moral hazard
- Myopic Loss Aversion
- Preference
- Preference Reversal
- Principal-agent problem
- Probability weighting
- Prospect Theory
- Reference Dependence
- Reference Point
- Regret Aversion
- Risk-as-Feelings Theory
- Risk aversion and risk tolerance
- Utility
- Utility Expectation Model
- Winner's Curse
