Research has begun to explore how age-related changes in the brain systems that are implicated in affect and motivation influence decision making. Older and younger adults show similar affective and ...

Elvis Picardo is a regular contributor to Investopedia and has 25+ years of experience as a portfolio manager with diverse capital markets experience. Suzanne is a content marketer, writer, and ...

A new theory of economic decision-making offers an explanation as to why humans, in general, make decisions that are simply adequate, not optimal. A new theory of economic decision-making from Mina ...

Seventeenth-century mathematician Blaise Pascal first introduced the idea of expected value, which is reached by multiplying the value of something (how much it's wanted or needed) with the ...

In many situations, performance on several attributes is important. Moreover, a decision maker's utility may depend not on the absolute level of performance on each attribute, but rather on whether ...

I analyze two expected utility models which abandon the consequentialist assumption of terminal wealth positions. In the expected utility of gambling wealth model, in which initial wealth is allowed ...