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This volume collects the best work representative of the theory of decision making under risk and uncertainty. Thirteen articles present extensions and alternatives to expected utility theory explaining behavior in and out of the laboratory, including activity in financial markets, crimes of passion, and the Ellsberg paradox. §These contributions on the theory of individual behavior are complemented by five studies reporting the design, execution, and implications of experiments that test alternative theories. Finally, the implications of the interaction of individuals under risk and uncertainty in markets and negotiation are explored in ten papers. Throughout, the approach taken reflects the multidisciplinary nature of the research. §The contributors include economists, psychologists, statisticians, and management scientists, each writing to make their work critically comprehensible to the wider audience.
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