Showing 1 - 10 of 47
This article investigates the relationship between optimal gear selectivity and effort cost in the fishing industry We first show that optimal selectivity depends negatively on the level of effort cost, but that this relationship is not continuous. Optimal selectivity switches when real effort...
Persistent link: https://www.econbiz.de/10010820983
We characterize the set of second-best optimal "menus" of student-loan contracts in a simple economy with risky labour-market outcomes, adverse selection, moral hazard and risk aversion. The model combines student loans with an elementary optimal income-tax problem. The second-best optima...
Persistent link: https://www.econbiz.de/10010933842
Victor prefers safety more than Ursula if whenever Ursula prefers some constant to some uncertain act, so does Victor. This paradigm, whose Expected Utility version takes the form of Arrow & Pratt's more risk averse concept, will be studied in the Choquet Uncertainty model, letting u and μ (v...
Persistent link: https://www.econbiz.de/10010605324
Monitoring is typically included in economic models of crime thanks to a probability of detection, constant across individuals. We build on recent results in psychology to argue that comparative optimism deeply affects this standard relation. To this matter, we introduce an experiment involving...
Persistent link: https://www.econbiz.de/10010750633
This paper studies monotone risk aversion, the aversion to monotone, meanpreserving increase in risk (Quiggin [21]), in the Rank Dependent Expected Utility (RDEU) model. This model replaces expected utility by another functional, characterized by twofunctions, a utility function u in conjunction...
Persistent link: https://www.econbiz.de/10010750827
This chapter of a collective book aims at presenting the basics of decision making under risk. We first define notions of risk and increasing risk and recall definitions and classifications (that are valid independently of any representation) of behavior under risk. We then review the classical...
Persistent link: https://www.econbiz.de/10010738471
The classical expected utility model of decision under risk (von Neumann-Morgenstern, 1944) has been criticized from an experimental point of view (Allais' paradox) as well as for its restrictive lack of explanatory power. The Rank-Dependent Expected Utility model (RDU) model (Quiggin, 1982)...
Persistent link: https://www.econbiz.de/10010738473
We report in this paper the result of three experiments on risk, ambiguity and time attitude. The first two differed by the population considered (students vs general population) while the third one used a different protocol and concerned students and portfolio managers. We find quite a lot of...
Persistent link: https://www.econbiz.de/10010738616
We explore empirically whether earnings uncertainty and borrowing constraints deter households from the stockmarket, consistent with the predictions of theoretical studies of portfolio choice in the presence of uninsurable earnings. Recent extensions highlight the importance of the correlation...
Persistent link: https://www.econbiz.de/10010738868
For a sub-sample of French households of an Insee wealth survey, we obtain new and relative measures of 5 individual preference parameters : the risk "attitude" (aversion, prudence...), the rate of time depreciation over the life-cycle, the degree of short-term impatience, and the degrees of...
Persistent link: https://www.econbiz.de/10010739045