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 …

We analyze a two-stage game between two heterogeneous players. At stage one, common risk is chosen by one of the … players. At stage two, both players observe the given level of risk and simultaneously invest in a winner-take-all competition … risk taking at stage one - an effort effect, a likelihood effect and a reversed likelihood effect. For the likelihood …

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 …