The Bossaerts team, aka Caltech Laboratory for Experimental Finance, studies human decision making under uncertainty. Mostly this means financial decision making, but we go beyond that, because, to understand attitudes towards financial risk, one needs to explore general perception and behavior under uncertainty. This includes strategic uncertainty, i.e., uncertainty created intentionally to please or to harm.
The focus is on developing novel experimental methodology. This stretches from designing tasks at the individual level suitable for neurobiological investigation, to organizing multiple interconnected competitive markets to study the general equilibrium behavior of the "system" and how this differs from the behavior of its components (i.e., the individuals).
