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Alternative Payoff Mechanisms for Choice under Risk

Cox, James C.; Sadiraj, Vjollca; Schmidt, Ulrich - Institut für Weltwirtschaft (IfW) - 2014

individuals’ attitudes toward risk. It challenges the conventional view that the random lottery incentive mechanism introduces no … biases in inducing risk preferences …

Persistent link: https://www.econbiz.de/10010886962

Reconsidering the common ratio effect: The roles of compound independence, reduction, and coalescing

Schmidt, Ulrich; Seidl, Christian - Institut für Weltwirtschaft (IfW) - 2014

Common ratio effects should be ruled out if subjects' preferences satisfy compound independence, reduction of compound lotteries, and coalescing. In other words, at least one of these axioms should be violated in order to generate a common ratio effect. Relying on a simple experiment, we...

Persistent link: https://www.econbiz.de/10010886877

Risk Preferences may be Time Preferences: A Comment on Andreoni and Sprenger (2012)

Schmidt, Ulrich - Institut für Weltwirtschaft (IfW) - 2014

can allocate money between two different points of time under the condition of risk. A&S claim that their results refute …

Persistent link: https://www.econbiz.de/10010886922

Measuring Individual Risk Attitudes in the Lab: Task or Ask? An Empirical Comparison

Lönnqvist, Jan-Erik; Verkasalo, Markku; Walkowitz, Gari; … - Institut für Weltwirtschaft (IfW) - 2014

This paper compares two prominent empirical measures of individual risk attitudes — the Holt and Laury (2002) lottery … (a) their within-subject stability over time (one year) and (b) their correlation with actual risk-taking behaviour in … correlations with a Big Five personality measure and is correlated with actual risk-taking behaviour. The results suggest that the …

Persistent link: https://www.econbiz.de/10010886955

Endogenous Prospect Theory

Schmidt, Ulrich; Zank, Horst - Institut für Weltwirtschaft (IfW) - 2010

In previous models of (cumulative) prospect theory reference-dependence of preferences is imposed beforehand and the location of the reference point is exogenously determined. This paper provides an axiomatization of a new specification of cumulative prospect theory, termed endogenous prospect...

Persistent link: https://www.econbiz.de/10010955835

An experimental investigation of the disparity between WTA and WTP for lotteries

Schmidt, Ulrich; Traub, Stefan - Institut für Weltwirtschaft (IfW) - 2009

may lead to contradictory results. The disparity is significantly reduced when background risk is introduced. That is …

Persistent link: https://www.econbiz.de/10010956013

Estimating risk attitudes in conventional and artefactual lab experiments: The importance of the underlying assumptions

Drichoutis, Andreas C.; Koundouri, Phoebe - Institut für Weltwirtschaft (IfW) - 2012

In this paper the authors assess the importance of sample type in the estimation of risk preferences. The authors … elicit and compare risk preferences from student subjects and subjects drawn from the general population, using the multiple … price list method devised by Holt and Laury (Risk aversion and incentive effects, 2002). The authors find evidence …

Persistent link: https://www.econbiz.de/10010956059

An Experimental Investigation of Violations of Transitivity in Choice under Uncertainty

Birnbaun, Michael H.; Schmidt, Ulrich - Institut für Weltwirtschaft (IfW) - 2008

Several models of choice under uncertainty imply systematic violations of transitivity of preference. Our experiments explored whether people show patterns of intransitivity predicted by these models. To distinguish “true” violations from those produced by “error,” a model was fit in...

Persistent link: https://www.econbiz.de/10005076116

One Step at a Time: Do Threshold Patterns Matter in Public Good Provision?

Asher, Sam; Casaburi, Lorenzo; Nikolov, Plamen; Ye, Maoliang - Institut für Weltwirtschaft (IfW) - 2009

There is a substantial literature examining coordination in public goods games. We conducted an experiment to explore how varying patterns of thresholds affect the willingness of subjects to contribute to a public good. We had subjects play a multiperiod game where each subject was allocated an...

Persistent link: https://www.econbiz.de/10005083351

Transitivity in Health Utility Measurement: An Experimental Analysis

Schmidt, Ulrich; Stolpe, Michael - Institut für Weltwirtschaft (IfW) - 2008

Several experimental studies observed substantial violations of transitivity in decisions between risky lotteries over monetary outcomes. The goal of our experiment is to test whether these violations also affect the evaluation of health states. A particular feature of our experimental design is...

Persistent link: https://www.econbiz.de/10005700534