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Andrea Langer-Ballion

Article 'Optimal Stopping in a Dynamic Salience Model' accepted for publication in the International Economic Review.

We investigate dynamic risk decisions according to the salience theory by deriving hypotheses on dynamic risk decisions theoretically and then experimentally testing them. The results support all hypotheses. We also observe a strong correlation between static and dynamic decisions, suggesting that the salience theory can coherently explain risk decisions in both static and dynamic contexts. Our findings contribute to understanding when people acquire and sell financial products, how they behave in gambling, and when they enter or retire from the labor market.