Risky discounts differ from other discount formats in that the actual discount level is determined by chance (e.g., “scratch & save” cards). Four studies investigated whether consumers prefer to receive risky discounts on a per-purchase or per-item basis. Although these options do not differ...

In standard models of experimentation, the costs of project development consist of (a) the direct cost of running trials as well as (b) the implicit opportunity cost of leaving alternative projects idle. Another natural type of experimentation cost, the cost of holding on to the option of...

We consider a sequential decision problem where the decision maker is informed of the actual payoff with delay. We introduce a new condition, which generalizes the condition given by Blackwell and ensures that the decision maker can approach a fixed closed and convex set under delay. We show how...

This paper proposes a new approach for modeling investor fear after rare disasters. The key element is to take into account that investors' information about fundamentals driving rare downward jumps in the dividend process is not perfect. Bayesian learning implies that beliefs about the...

This paper formulates a continuous-time information transmission model in which an altruistic sender privately observes a stochastic state variable, and incurs a communication cost when she broadcasts a message. We characterize the sender's optimal announcement strategy using an ordinary...

I study the consequences of heterogeneity of skills for efficient unemployment insurance design, using a principal-agent setup. Agents' wages depend on individual productivity and the quality of the worker-firm match. Productivity declines during unemployment and increases on the job. For...

OECD countries rely on regulatory tools to manage potential risks from exposure to targeted chemicals. Ex-ante regulatory impact assessment has a long tradition in many OECD countries, with established analytical steps and oversight as well as opportunities for public engagement to hold...

How large should a monetary policy committee be ? Which voting rule should a monetary policy committee adopt ? This paper builds on Condorcet?s jury theorem to analyse the relationships between committee size and voting rules in a model where policy discussions are subject to a time...

The decision of many individuals in floodplains to not purchase flood insurance may impair the risk-spreading function of flood insurance markets. This study estimates the effectiveness of risk communication frames and insurance policy conditions in increasing demand for flood insurance. It is...

Incentive schemes not only influence the effort provision of workers, but might also induce sorting. As drivers of self-selection, the literature mainly focuses on measures of productivity; however, other variables, such as preferences, beliefs and personality, also play a role. With this paper,...