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Loss Aversion? Not with Half-a-Million on the Table!
Blavatskyy, Pavlo; Pogrebna, Ganna - Institut für Volkswirtschaftslehre, … - 2006
In the television show Affari Tuoi a contestant is endowed with a sealed box containing a monetary prize between one cent and half a million euros. In the course of the show the contestant is offered to exchange her box for another sealed box with the same distribution of possible monetary...
Persistent link: https://www.econbiz.de/10005585659
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Contingent valuation: a new perspective
Schlaepfer, Felix - Institut für Volkswirtschaftslehre, … - 2007
After several decades of academic research on the contingent valuation (CV) method a consistent behavioral explanation of 'hypothetical bias' is still lacking. Based on evidence from economics, economic psychology and the political sciences, I propose an explanation that is based on two simple...
Persistent link: https://www.econbiz.de/10005566324
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Testing the Predictions of Decision Theories in a Natural Experiment When Half a Million Is at Stake
Blavatskyy, Pavlo; Pogrebna, Ganna - Institut für Volkswirtschaftslehre, … - 2006
In the television show Affari Tuoi an individual faces a sequence of binary choices between a risky lottery with equiprobable prizes of up to half a million euros and a monetary amount for certain. The decisions of 114 show participants are used to test the predictions of ten decision theories:...
Persistent link: https://www.econbiz.de/10005627782
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Risk Aversion When Gains Are Likely and Unlikely: Evidence from a Natural Experiment with Large Stakes
Blavatskyy, Pavlo; Pogrebna, Ganna - Institut für Volkswirtschaftslehre, … - 2006
In the television show Affari Tuoi a contestant is endowed with a sealed box containing a monetary prize between one cent and half a million euros. In the course of the show the contestant learns more information about the distribution of possible monetary prizes inside her box. Consider two...
Persistent link: https://www.econbiz.de/10005627793
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Models of Stochastic Choice and Decision Theories: Why Both are Important for Analyzing Decisions
Blavatskyy, Pavlo; Pogrebna, Ganna - Institut für Volkswirtschaftslehre, … - 2007
Economic research offers two traditional ways of analyzing decision making under risk. One option is to compare the goodness of fit of different decision theories using the same model of stochastic choice. An alternative way is to vary models of stochastic choice combining them with only one or...
Persistent link: https://www.econbiz.de/10005628002
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Do People Behave in Experiments as in the Field? – Evidence from Donations
Benz, Matthias; Meier, Stephan - Institut für Volkswirtschaftslehre, …
Laboratory experiments are an important methodology in economics, especially in the field of behavioral economics …. However, it is still debated to what extent results from laboratory experiments can be applied to field settings. One highly … important question with respect to the external validity of experiments is whether the same individuals act in experiments as …
Persistent link: https://www.econbiz.de/10005627987
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When do groups perform better than individuals? A company takeover experiment
Casari, Marco; Zhang, Jingjing; Jackson, Christine - Institut für Volkswirtschaftslehre, … - 2010
It is still an open question when groups perform better than individuals in intellectual tasks. We report that in a company takeover experiment, groups placed better bids than individuals and substantially reduced the winner’s curse. This improvement was mostly due to peer pressure over the...
Persistent link: https://www.econbiz.de/10008642477
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Rationality on the Rise: Why Relative Risk Aversion Increases with Stake Size
Fehr-Duda, Helga; Bruhin, Adrian; Epper, Thomas; … - Institut für Volkswirtschaftslehre, … - 2007
How does risk tolerance vary with stake size? This important question cannot be adequately answered if framing effects, nonlinear probability weighting, and heterogeneity of preference types are neglected. We show that, contrary to gains, no coherent change in relative risk aversion is observed...
Persistent link: https://www.econbiz.de/10005756603
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Risk and Rationality: The Effect of Incidental Mood on Probability Weighting
Fehr, Helga; Epper, Thomas; Bruhin, Adrian; Schubert, Renate - Institut für Volkswirtschaftslehre, … - 2007
When valuing risky prospects, people tend to overweight small probabilities and to underweight large probabilities. Nonlinear probability weighting has proven to be a robust empirical phenomenon and has been integrated in decision models, such as cumulative prospect theory. Based on a laboratory...
Persistent link: https://www.econbiz.de/10005756644
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Probability Weighting as Evolutionary Second-best
Herold, Florian; Netzer, Nick - Institut für Volkswirtschaftslehre, … - 2010
The economic concept of the second-best involves the idea that multiple simultaneous deviations from a hypothetical first-best optimum may be optimal once the first-best itself can no longer be achieved, since one distortion may partially compensate for another. Within an evolutionary framework,...
Persistent link: https://www.econbiz.de/10008526715