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Insurance Demand under Prospect Theory:A Graphical Analysis
Schmidt, Ulrich - Institut für Weltwirtschaft (IfW) - 2012
This paper analyzes insurance demand under prospect theory in a simple model with two states of the world and fair insurance contracts. We argue that two different reference points are reasonable in this framework, state-dependent initial wealth or final wealth after buying full insurance....
Persistent link: https://www.econbiz.de/10010886880
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Insurance Demand and Prospect Theory
Schmidt, Ulrich - Institut für Weltwirtschaft (IfW) - 2012
Empirical evidence has shown that people are unwilling to insure rare losses at subsidized premiums and at the same time take-up insurance for moderate risks at highly loaded premiums. This paper explores whether prospect theory, in particular diminishing sensitivity and loss aversion, can...
Persistent link: https://www.econbiz.de/10009391896
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Structure and Temporal Change of Credit Network between Banks and Large Firms in Japan
Fujiwara, Yoshi; Aoyama, Hideaki; Ikeda, Yuichi; … - Institut für Weltwirtschaft (IfW) - 2009
Credit relationships between commercial banks and quoted firms are studied for the structure and its temporal change … from the year 1980 to 2005. At each year, the credit network is regarded as a weighted bipartite graph where edges … correspond to the relationships and weights refer to the amounts of loans. Reduction in the supply of credit affects firms as …
Persistent link: https://www.econbiz.de/10005097477
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Banks’ Regulatory Buffers, Liquidity Networks and Monetary Policy Transmission
Merkl, Christian; Stolz, Stéphanie - Institut für Weltwirtschaft (IfW) - 2006
Based on a quarterly regulatory dataset for German banks from 1999 to 2004, this paper analyzes the effects of banks’ regulatory capital on the transmission of monetary policy in a system of liquidity networks. The dynamic panel regression results provide evidence in favor of the bank capital...
Persistent link: https://www.econbiz.de/10005818925
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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
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Horizontal mergers and uncertainty
Le Pape, Nicolas; Zhao, Kai - Institut für Weltwirtschaft (IfW) - 2013
Some path-breaking work on mergers takes efficiency gains for granted, or assumes that firms have perfect knowledge when taking merger decisions. In practice, firms and competition authorities cannot know exact future efficiency gains, prior to merger consummation. This paper analyzes horizontal...
Persistent link: https://www.econbiz.de/10010956064
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Enforcement of environmental liability in the case of uncertain causality and asymmetric information
Bartsch, Elga - Institut für Weltwirtschaft (IfW) - 1996
In providing precautionary incentives and allocating environmental risk, liability for environmental damages faces two …
Persistent link: https://www.econbiz.de/10009276567
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Asymmetric Price Adjustment in the Small
Levy, Daniel; Haipeng (Allan) Chen; Ray, Sourav; … - Institut für Weltwirtschaft (IfW) - 2007
Analyzing a large weekly retail transaction price dataset, we uncover a surprising regularity— small price increases occur more frequently than small price decreases for price changes of up to about 10 cents, while there is no such asymmetry for larger price changes. The asymmetry holds for...
Persistent link: https://www.econbiz.de/10005700618
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Donations to US Based NGOs in International Development Cooperation: How (Un-)Informed Are Private Donors?
Nunnenkamp, Peter; Öhler, Hannes - Institut für Weltwirtschaft (IfW) - 2011
Apart from scaling up foreign aid by NGOs, informed choices of private donors could also encourage an efficient and targeted use of NGO funds in international development cooperation. We assess the determinants of private donations across a large sample of US based NGOs with foreign aid...
Persistent link: https://www.econbiz.de/10008835256
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G-20-Gipfel in London: Ein Durchbruch zur Regulierung der Finanzmärkte?
Langhammer, Rolf J.; Neuberger, Doris; Polleit, Thorsten; … - Institut für Weltwirtschaft (IfW) - 2009
System, indem Geld per Kredit geschaffen wird±, durch die Politikmaßnahmen unangetastet. Einen Ausweg aus dem Krisenzyklus …
Persistent link: https://www.econbiz.de/10010982929