Showing 1 - 10 of 15
We experimentally investigate whether the satisficing approach isabsorbable, i.e., whether it still applies after participants become awareof it. In a setting where an investor decides between a riskless bondand either one or two risky assets, we familiarize participants with thesatisficing...
Persistent link: https://www.econbiz.de/10005866714
This paper investigates distributive justice using a fourfold experimental design:The ignorance and the risk scenarios … became more inequality-averse and one quarterremained unchanged as umpires. In the risk scenario, subjects become onaverage …'shypothesis, the entropy social welfare function, and randomization preferenceenjoyed impressive acceptance. For the risk scenario, the …
Persistent link: https://www.econbiz.de/10005866910
population size of eachregion. The experiment shows that centralization induces lower taxmorale and less efficient outcomes. The …
Persistent link: https://www.econbiz.de/10005866975
examine the effect of imperfect information on contributions levels. To assess prior risk attitudes, individual valuations of … clear evidence of risk aversion, and of a negative relationship between the latter and willingness to cooperate. …
Persistent link: https://www.econbiz.de/10005866650
We identify the inefficiencies that arise when negotiation between two parties takes place in the presence of transaction costs. First, for some values of these costs it is efficient to reach an agreement but the unique equilibrium outcome is one in which agreement is never reached. Secondly,...
Persistent link: https://www.econbiz.de/10010928645
This paper explores the extent to which the presence of ex-ante transaction costs may lead to failures of the Coase Theorem. In particular we identify and investigate the basic ‘hold-up problem’ which arises whenever the parties to a Coasian negotiation have to pay some ex-ante costs for the...
Persistent link: https://www.econbiz.de/10010745037
We identify and investigate the basic ‘hold-up problem’ which arises whenever each party to a contract has to pay some ex-ante cost for the contract to become feasible. We then proceed to show that, under plausible circumstances, a ‘contractual solution’ to this hold-up problem is not...
Persistent link: https://www.econbiz.de/10010745370
It is known from the literature on uncertainty that in cases where individuals express a preference for a high win-probability bet over a bet with high winnings they nevertheless will bid more to obtain the bet with high winnings. We investigate whether a similar phenomenon applies in the...
Persistent link: https://www.econbiz.de/10010928778
Building on previous studies on perceptions of inequality, welfare and risk we investigate the structure of individuals …' rankings of uncertain prospects in terms of risk and their relationship to individual preferences. We examine three interlinked … propositions that are fundamental to the standard economic approach to risk: (i) that rankings by risk are simply the reverse of …
Persistent link: https://www.econbiz.de/10010744849
Orderings of income distribution in terms of inequality should be closely related to orderings in terms of risk. Using … a novel mult-country questgionnaire experiment we examine the basis for this claim in terms of respondents …' distributional perceptions. We show that in terms of both inequality and risk individuals consistently reject one of the standard …
Persistent link: https://www.econbiz.de/10010746203