Premium
Experiments in decision‐making under risk and uncertainty: thinking outside the box
Author(s) -
Elliott Steven R.
Publication year - 1998
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/(sici)1099-1468(199806/08)19:4/5<239::aid-mde889>3.0.co;2-f
Subject(s) - investment (military) , set (abstract data type) , selection (genetic algorithm) , field (mathematics) , operations research , electricity , management science , risk analysis (engineering) , computer science , economics , actuarial science , business , engineering , artificial intelligence , political science , mathematics , electrical engineering , politics , pure mathematics , law , programming language
This paper surveys a selection of recent research results which use laboratory methods to contribute to our understanding of risk and uncertainty in environments which are of particular interest to managerial decision‐making. The first set of experimental results addresses issues related to insuring against risky outcomes and the roles of the degree of risk and the complexity of risk. Laboratory results related to models of job search are then reviewed, followed by applications of laboratory methods to evaluating models of investment decisions. Finally, issues related to markets for inputs (petroleum, water, electricity) are presented. The necessarily interactive role of theory development, laboratory experimentation and field observation is discussed. © 1998 John Wiley & Sons, Ltd.