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Assessing an intuitive condition for stability under a range of traffic conditions via a generalised Lu-Kumar network

Glazebrook, Kevin D.; Niño-Mora, José - Department of Economics and Business, Universitat … - 1997

We argue the importance both of developing simple sufficient conditions for the stability of general multiclass … between service stations. To achieve the former, we review a peak-rate stability condition and extend its range of application … and for the latter, we introduce a generalisation of the Lu-Kumar network on which the stability condition may be tested …

Persistent link: https://www.econbiz.de/10005772144

A non-quasi-competitive Cournot oligopoly with stability

Villanova, Ramon; Paradís, Jaume; Viader, Pelegrí - Department of Economics and Business, Universitat … - 1999

This paper presents a classical Cournot oligopoly model with some peculiar features: it is non--quasi--competitive as price under N-poly is greater than monopoly price; Cournot equilibrium exists and is unique with each new entry; the successive equilibria after new entries are stable under the...

Persistent link: https://www.econbiz.de/10005772199

Price increase and stability with new entries in Cournot markets

Villanova, Ramon; Paradís, Jaume; Viader, Pelegrí; … - Department of Economics and Business, Universitat … - 2002

It is widely accepted in the literature about the classical Cournot oligopoly model that the loss of quasi–competitiveness is linked, in the long run as new firms enter the market, to instability of the equilibrium. In this paper, though, we present a model in which a stable unique symmetric...

Persistent link: https://www.econbiz.de/10005772263

Discrete choice estimation of risk aversion

Apesteguia, Jose; Ballester, Miguel A. - Department of Economics and Business, Universitat … - 2014

We analyze the use of discrete choice models for the estimation of risk aversion and show a fundamental flaw in the standard random utility model which is commonly used in the literature. Specifically, we find that given two gambles, the probability of selecting the riskier gamble may be larger...

Persistent link: https://www.econbiz.de/10010929579

Do the eealthy risk more money? An experimental comparison

Bosch-Domènech, Antoni; Silvestre, Joaquim - Department of Economics and Business, Universitat … - 2003

Are poor people more or less likely to take money risks than wealthy folks? We find that risk attraction is more prevalent among the wealthy when the amounts of money at risk are small (not surprising, since ten dollars is a smaller amount for a wealthy person than for a poor one), but,...

Persistent link: https://www.econbiz.de/10005704958

Stochastic dominance and absolute risk aversion

Caballé, Jordi; Esteban, Joan - Department of Economics and Business, Universitat … - 2002

In this paper we proose the infimum of the Arrow-Pratt index of absolute risk aversion as a measure of global risk aversion of a utility function. We then show that, for any given arbitrary pair of distributions, there exists a threshold level of global risk aversion such that all increasing...

Persistent link: https://www.econbiz.de/10005708017

Measuring strategic uncertainty in coordination games

Heinemann, Frank; Nagel, Rosemarie; Ockenfels, Peter - Department of Economics and Business, Universitat … - 2004

This paper explores three aspects of strategic uncertainty: its relation to risk, predictability of behavior and subjective beliefs of players. In a laboratory experiment we measure subjects’ certainty equivalents for three coordination games and one lottery. Behavior in coordination games is...

Persistent link: https://www.econbiz.de/10005827518

Risk aversion and embedding bias

Bosch-Domènech, Antoni; Silvestre, Joaquim - Department of Economics and Business, Universitat … - 2006

In Selten (1967) “Strategy Method,” the second mover in the game submits a complete strategy. This basic idea has been exported to nonstrategic experiments, where a participant reports a complete list of contingent decisions, one for each situation or state in a given sequence, out of which...

Persistent link: https://www.econbiz.de/10005771971

Averting risk in the face of large losses: Bernoulli vs. Tversky and Kahneman

Bosch-Domènech, Antoni; Silvestre, Joaquim - Department of Economics and Business, Universitat … - 2006

We experimentally question the assertion of Prospect Theory that people display risk attraction in choices involving high-probability losses. Indeed, our experimental participants tend to avoid fair risks for large (up to € 90), high-probability (80%) losses. Our research hinges on a novel...

Persistent link: https://www.econbiz.de/10005771992

Does risk aversion or attraction depend on income? An experiment

Bosch-Domènech, Antoni; Silvestre, Joaquim - Department of Economics and Business, Universitat … - 1999

Does risk attitude (aversion or attraction) vary with the level of the income at risk? About half of our subjects chose to insure all levels, whereas another half chose instead not to insure low levels, but to insure high levels.

Persistent link: https://www.econbiz.de/10005772015