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Adding Risks: Some General Results about Time Diversification

Lam, Kin; Zou, Liang - Tinbergen Instituut - 2000

.Specifically, any investor's maximal expected utility directlyincreases with n, as well as the investor's willingness toallocate more …

Persistent link: https://www.econbiz.de/10011255554

Risk Aversion and the Subjective Time Discount Rate: A Joint Approach

Praag, Bernard M.S. van; Booij, Adam S. - Tinbergen Instituut - 2003

of individual responses to six lottery questions. Wederive a simultaneous estimate of risk aversion γ and the time …

Persistent link: https://www.econbiz.de/10011255702

Loss Modification Incentives for Insurers under Expected Utility and Loss Aversion

Soetevent, Adriaan R.; Zhou, Liting - Tinbergen Instituut - 2014

expected profit maximizing loss probability within an expected utility framework. We then use Köszegi and Rabin's (2006, 2007 …

Persistent link: https://www.econbiz.de/10011256470

Valuation of Travel Time and TravelIer Information

Rietveld, Piet - Tinbergen Instituut - 2003

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

Expected Utility and Catastrophic Risk

Ikefuji, Masako; Laeven, Roger; Magnus, Jan; Muris, Chris - Tinbergen Instituut - 2014

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 under heavy-tailed distributional assumptions. Our results are context …

Persistent link: https://www.econbiz.de/10011261938

What is the Value of Entrepreneurship? A Review of Recent Research

Praag, C. Mirjam van; Versloot, Peter H. - Tinbergen Instituut - 2007

group’? A fourth type of contribution studied is the role of entrepreneurship in increasing individuals’ utility levels …

Persistent link: https://www.econbiz.de/10011257287

Continuous Beliefs Dynamics

Diks, Cees; Weide, Roy van der - Tinbergen Instituut - 2003

We propose a general framework for studying the evolution ofheterogeneous beliefs in a dynamic feedback setting. Beliefsdistributions are defined on a continuous space representingthe possible strategies agents can choose from. Agents base theirchoices on past performances. As new information...

Persistent link: https://www.econbiz.de/10011249542

Heterogeneity as a Natural Source of Randomness

Diks, Cees; Weide, Roy van der - Tinbergen Instituut - 2003

random utility framework, heterogeneity can be seen to act as a 'natural source of randomness'. Allowing for modeling the …

Persistent link: https://www.econbiz.de/10011255553

Memory, Expectation Formation and Scheduling Choices

Koster, Paul; Peer, Stefanie; Dekker, Thijs - Tinbergen Instituut - 2014

Limited memory capacity, retrieval constraints and anchoring are central to expectation formation processes. We develop a model of adaptive expectations where individuals are able to store only a finite number of past experiences of a stochastic state variable. Retrieval of these experiences is...

Persistent link: https://www.econbiz.de/10011255773

Expectations in Experiments

Wagener, Florian - Tinbergen Instituut - 2013

The rational expectations hypothesis is one of the cornerstones of current economic theorising. This review discusses a number of experiments that focus on expectation formation by human subjects and analyses the implications for the rational expectations hypothesis. The experiments show that...

Persistent link: https://www.econbiz.de/10011257595