This experimental study investigates insurance decisions in low-probability, high-loss risk situations. Results … individuals are risk averse with no specific threshold probability. …

A main prediction of agency theory is the well known risk-incentive trade-off. Incentive contracts should be found in … environments with little uncertainty and for agents with low degrees of risk aversion. There is an ongoing debate in the literature … use of a unique representative data set, we find clear evidence that risk aversion has a highly significant and …

This paper studies the impact of incentives on worker self-selection in a controlled laboratory experiment. Subjects …

candidate is expectations: what people expect could affect how they feel about what actually occurs. In a real-effort experiment …

replacement and a different color wins in each draw. The 50-50 risky urn turns out to have the highest risk conceivable among all … of SEU share the same predictions in our design, for any first-order risk attitude. Yet, we observe that substantial …

cornerstone of contract theory. We have conducted an experiment with 720 participants to explore whether the theoretical insights …