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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

Reflections on gains and losses: A 2x2x7 experiment

Bosch-Domènech, Antoni; Silvestre, Joaquim - Department of Economics and Business, Universitat … - 2002

We test whether risk attitudes change when losses instead of gains are involved. The study of gain-loss asymmetries has been largely confined to “reflected” choices, where all the money amounts of a positive prospect are multiplied by minus one. We define the decomposition “reflection =...

Persistent link: https://www.econbiz.de/10005572639

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

When in peril, retrench: Testing the portfolio channel of contagion

Broner, Fernando; Gelos, R. Gaston; Reinhart, Carmen M. - Department of Economics and Business, Universitat … - 2003

One plausible mechanism through which financial market shocks may propagate across countries is through the impact that past gains and losses may have on investors’ risk aversion and behavior. This paper presents a stylized model illustrating how heterogeneous changes in investors’ risk...

Persistent link: https://www.econbiz.de/10005772251

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