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The value of travel time plays an important role in cost benefit analysis of infrastructureprojects. However, the issue of uncertainty on travel times and the implications this has forestimations of travel time values has received much less attention in the literature. In thispaper we compare...
Persistent link: https://www.econbiz.de/10011257109
An expected utility based cost-benefit analysis is in general fragile to its distributional assumptions. We derive necessary and sufficient conditions on the utility function of the expected utility model to avoid this. The conditions ensure that expected (marginal) utility remains finite also...
Persistent link: https://www.econbiz.de/10011261938
We show in general that risky investments become more attractive asthe investment horizon (n) lengthens.Specifically, any investor's maximal expected utility directlyincreases with n, as well as the investor's willingness toallocate more capital to the risky assets if his optimal strategy...
Persistent link: https://www.econbiz.de/10011255554
This discussion paper led to a publication in the <A HREF="http://www.sciencedirect.com/science/article/pii/S0167268109000109">'Journal of Economic Behavior & Organization'</A>, 2009, 70(1-2), 374-388.<P> In this paper we analyze a large sample of individual responses to six lottery questions. Wederive a simultaneous estimate of risk aversion γ and the time preference discount...</p></a>
Persistent link: https://www.econbiz.de/10011255702
Given the possibility to modify the probability of a loss, will a profit-maximizing insurer engage in loss prevention or is it in his interest to increase the loss probability? This paper investigates this question. First, we calculate the expected profit maximizing loss probability within an...
Persistent link: https://www.econbiz.de/10011256470
The supposed irrelevance of historical costs for rational decision making has been the subject of much interest in the economic literature. In this paper we explore whether individual decision making under risk is affected by the cost of the supplied information. Outside of the lab, it is...
Persistent link: https://www.econbiz.de/10011256591
beliefs of the employers are self-fulfilling. Theoretically and in an experiment, we investigate under what circumstances …
Persistent link: https://www.econbiz.de/10011256510
works in anindividual decision experiment. Subjects are faced with a sequentialsearch problem. After extensive practice …
Persistent link: https://www.econbiz.de/10011256616
the size of credible deviations. In our experiment, we find support for the relevance of credible deviations. In addition …
Persistent link: https://www.econbiz.de/10011256700
dictator game. In our experiment teams are more selfish than individuals, and the most selfish team member has the strongest …
Persistent link: https://www.econbiz.de/10011256730