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BEHAVIORAL FINANCE: A USER-ORIENTED PROCEDURE TO ASSESSING PREFERENCES UNDER RISK
(STEF92 Technology, 2014, R. BORDLEY, L. TIBILETTI, M. UBERTI)
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According to the behavioral finance theory, agents act coherently with the Kahneman and Tversky prospect paradigms and may violate those dictated by the rational expected utility. From the point of view of real financial markets' applications, a key question concerns how to eliciting the financial professionals' risk preferences. In this contribution we propose the benchmarking procedure originally set up by Castagnoli & LiCalzi (1996) and Bordley & LiCalzi (2000) that couples sound axiomatic fundamentals with a u...



