Decision Making Under Uncertainty: Some Experimental Evidence From Auditing

The dominant theory of individual decision making under uncertainty is the von Neumann and Morgenstern's expected utility model (EUM). Although, this model has gained its popularity from its ability to explain a wide range of attitudes toward risk, empirical evidence over the last three decades has documented paradoxical behavior that is inconsistent with the EUM model. The present study examines in an experimental setting individuals' …