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Illusion of control as a source of poor diversification: Anexperimental approach

Fellner, Gerlinde - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2004

illusion of control. By forming their portfolio of tworisky lotteries and one risk-less alternative, subjects are requested to … investment. Also, offering adefault portfolio strongly determines final allocations. …

Persistent link: https://www.econbiz.de/10005866777

A Note on Skewness Seeking:An Experimental Analysis

Brünner, Tobias; Levinsky, Rene; Qiu, Jianying - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2007

In this paper we experimentally test skewness seeking at the individuallevel. Several prospects that can be ordered …

Persistent link: https://www.econbiz.de/10005866533

Task Transcending Satisficing - An Experimental Study

Fellner, Gerlinde; Güth, Werner; Martin, Ev - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2006

The paper explores the applicability of the satisficing approach. Inparticular, we investigate whether basic principles of aspiration formationand satisficing behavior are transferable between similar situations.Individuals are sequentially confronted with two risky investmenttasks, a simple and...

Persistent link: https://www.econbiz.de/10005866716

Uncertainty effect revisited using physical lottery format

Rydval, Ondřej; Ortmann, Andreas; Prokosheva, Sasha; … - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2009

We replicate three pricing tasks of Gneezy, List and Wu (2006) for which they document the so called uncertainty effect, namely that people value a binary lottery over non-monetary outcomes less than other people value the lottery’s worse outcome. Unlike the authors who implement a verbal...

Persistent link: https://www.econbiz.de/10005866429

Testing the Modigliani-Miller theorem directly in the lab:a general equilibrium approach

Mahagaonkar, Prashanth; Qiu, Jianying - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2008

In this paper, we experimentally test the Modigliani-Miller theorem. Applying ageneral equilibrium approach and not …-Miller theorem, experimental subjects well recognizedthe increased systematic risk of the equity with increasing leverage and … accordinglydemanded higher rate of return. Yet, this adjustment was not perfect: subjects un-derestimated the systematic risk of low …

Persistent link: https://www.econbiz.de/10005866450

Valuing Protection against Low Probability,High Loss Risks: Experimental Evidence

Morone, Andrea; Ozdemir, Ozlem - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2006

measure,(3)calculates relative risk aversion. The results of the experiment indicate that as theprobability of loss and loss …The study investigates protective responses in low probability and high loss risk situations.Particularly, it (1 … women) are found to be risk aversefor low probabilities. …

Persistent link: https://www.econbiz.de/10005866644

Do Individuals Recognize Cascade Behavior of Others? - An Experimental study

Stiehler, Andreas - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2003

In a cascade experiment subjects are confronted with artificial predecessors prdecting in line with the BHW model …

Persistent link: https://www.econbiz.de/10005866980

Time to Defect: Repeated Prisoners’ DilemmaExperiments with Uncertain Horizon

Bruttel, Lisa; Güth, Werner; Kamecke, Ulrich - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2007

Using a symmetric 2-person prisoners’ dilemma as the base game, each playerreceives a signal for the number of rounds to be played with the same partner.The actual number of rounds (the length of the supergame) is determined bythe maximal signal where each player expects the other’s signal...

Persistent link: https://www.econbiz.de/10005866526

Scenario-Based Satisficing in Saving:A Theoretical and Experimental Analysis

Güth, Werner; Levati, Maria Vittoria; Ploner, Matteo - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2007

Contrary to the models of deterministic life cycle saving, we take itfor granted that uncertainty of one's future is the essential problem ofsaving decisions. However, unlike the stochastic life cycle models, we capturethis crucial uncertainty by a non-Bayesian scenario-based...

Persistent link: https://www.econbiz.de/10005866571

Valuation of Self-Insurance and Self-Protection under Ambiguity: Experimental Evidence

Ozdemier, Ozlem - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2007

This experimental study, first, compares the individual valuations of two risk reduction mechanisms: self-insurance and … valuations when loss amounts are known. results confirm that there exists no “framing effect” due to the two risk reduction …

Persistent link: https://www.econbiz.de/10005866603