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An Economic Analysis of Exclusion Restrictions for Instrumental Variable Estimation
den Berg, Gerard J van - C.E.P.R. Discussion Papers - 2007
information on the value of the IV. This leads to violation of the exclusion restriction. We analyze this in a dynamic economic …
Persistent link: https://www.econbiz.de/10005792073
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Paying for Confidence: An Experimental Study of the Demand for Non-Instrumental Information
Eliaz, Kfir; Schotter, Andrew - C.E.P.R. Discussion Papers - 2009
willing to pay for information on the likelihood that this decision is ex-post optimal, even if this information will not … affect their decision. Our findings suggest that this demand for non-instrumental information is caused by what we refer to … be caused by an intrinsic preference for information, failure of backward induction or an attempt to minimize thinking …
Persistent link: https://www.econbiz.de/10004976787
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Individual Risk Attitudes: New Evidence from a Large, Representative, Experimentally-Validated Survey
Dohmen, Thomas J; Falk, Armin; Huffman, David; Schupp, … - C.E.P.R. Discussion Papers - 2006
This paper presents new evidence on the distribution of risk attitudes in the population, using a novel set of survey questions and a representative sample of roughly 22,000 individuals living in Germany. Using a question that asks about willingness to take risks in general, on an 11-point...
Persistent link: https://www.econbiz.de/10005123605
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Investment, Resolution of Risk, and the Role of Affect
Hopfensitz, Astrid; Krawczyk, Michal; Winden, Frans … - C.E.P.R. Discussion Papers - 2008
This experimental study is concerned with the impact of the timing of the resolution of risk on people’s willingness to take risks, with a special focus on the role of affect. While the importance of anticipatory emotions has so far been only inferred from decisions regarding hypothetical...
Persistent link: https://www.econbiz.de/10005124205
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Network Structure and Strategic Investments: An Experimental Analysis
Rosenkranz, Stephanie; Weitzel, Utz - C.E.P.R. Discussion Papers - 2008
This paper analyzes the effects of network positions and individual risk attitudes on individuals' strategic decisions in an experiment where actions are strategic substitutes. The game theoretic basis for our experiment is the model of Bramoullé and Kranton (2007). In particular, we are...
Persistent link: https://www.econbiz.de/10005136539
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Dynamic Choice, Independence, and Emotions
Hopfensitz, Astrid; Winden, Frans A.A.M. van - C.E.P.R. Discussion Papers - 2007
From the viewpoint of the independence axiom of expected utility theory, an interesting empirical dynamic choice problem involves the presence of a 'global risk', that is, a chance of losing everything whichever safe or risky option is chosen. In this experimental study, participants have to...
Persistent link: https://www.econbiz.de/10005136625
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Risk Aversion in a Dynamic Asset Allocation Experiment
Brocas, Isabelle; Carrillo, Juan D; Giga, Aleksandar; … - C.E.P.R. Discussion Papers - 2015
We conduct a controlled laboratory experiment where subjects dynamically choose their portfolio allocation between a safe and a risky asset. We first derive analytically the optimal allocation of an expected utility maximizer with HARA utility function. We then fit the experimental choices to...
Persistent link: https://www.econbiz.de/10011145479
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Keep Up With the Winners: Experimental Evidence on Risk Taking, Asset Integration, and Peer Effects
Fafchamps, Marcel; Kebede, Bereket; Zizzo, Daniel John - C.E.P.R. Discussion Papers - 2013
The paper reports the result of an experimental game on asset integration and risk taking. We find evidence that winnings in earlier rounds affect risk taking in subsequent rounds, but no evidence that real life wealth outside the experiment affects risk taking. We find some evidence of...
Persistent link: https://www.econbiz.de/10011084146
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Information Gatekeepers: Theory and Experimental Evidence
Brocas, Isabelle; Carrillo, Juan D; Palfrey, Thomas R - C.E.P.R. Discussion Papers - 2009
We consider a model where two adversaries can spend resources in acquiring public information about the unknown state … adversaries in the equilibrium of the game. We show that, as the cost of information acquisition for one adversary increases, that …
Persistent link: https://www.econbiz.de/10008528540
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Loss Aversion and Consumption Choice: Theory and Experimental Evidence
Karle, Heiko; Kirchsteiger, Georg; Peitz, Martin - C.E.P.R. Discussion Papers - 2012
In this paper we analyze a consumer choice model with price uncertainty, loss aversion, and expectation-based reference points. The implications of this model are tested in an experiment in which participants have to make a consumption choice between two sandwiches. We make use of the fact that...
Persistent link: https://www.econbiz.de/10011084678