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Network Structure and Strategic Investments: An Experimental Analysis
Rosenkranz, Stephanie; Weitzel, Utz - C.E.P.R. Discussion Papers - 2008
This paper analyzes the effects of network positions and individual risk attitudes on individuals' strategic decisions in an experiment where actions are strategic substitutes. The game theoretic basis for our experiment is the model of Bramoullé and Kranton (2007). In particular, we are...
Persistent link: https://www.econbiz.de/10005136539
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Parametric Characterizations of Risk Aversion and Prudence
Lajeri, Fatma; Nielsen, Lars Tyge - C.E.P.R. Discussion Papers - 1997
We show that in order to determine whether one decision-maker is more risk averse than another, it is sufficient to consider their attitudes towards a given two-parameter family of risks. When all risks belong to this family, useful comparisons of risk aversion can be made even in situations of...
Persistent link: https://www.econbiz.de/10005136604
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The role of intuition and reasoning in driving aversion to risk and ambiguity
Butler, Jeff; Guiso, Luigi; Jappelli, Tullio - C.E.P.R. Discussion Papers - 2011
Using a large sample of retail investors as well as experimental data we find that risk and ambiguity aversion are positively correlated. We show the common link is decision style: intuitive thinkers tolerate more risk and ambiguity than effortful reasoners. One interpretation is that intuitive...
Persistent link: https://www.econbiz.de/10008915807
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Risk Aversion in a Dynamic Asset Allocation Experiment
Brocas, Isabelle; Carrillo, Juan D; Giga, Aleksandar; … - C.E.P.R. Discussion Papers - 2015
We conduct a controlled laboratory experiment where subjects dynamically choose their portfolio allocation between a safe and a risky asset. We first derive analytically the optimal allocation of an expected utility maximizer with HARA utility function. We then fit the experimental choices to...
Persistent link: https://www.econbiz.de/10011145479
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Manipulating Reliance on Intuition Reduces Risk and Ambiguity Aversion.
Butler, Jeff; Guiso, Luigi; Jappelli, Tullio - C.E.P.R. Discussion Papers - 2013
Prior research suggests that those who rely on intuition rather than effortful reasoning when making decisions are less averse to risk and ambiguity. The evidence is largely correlational, however, leaving open the question of the direction of causality. In this paper, we present experimental...
Persistent link: https://www.econbiz.de/10011083555
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Monotone Risk Aversion
Nielsen, Lars Tyge - C.E.P.R. Discussion Papers - 1997
This paper shows that a strictly increasing and risk averse utility function with decreasing absolute risk aversion is necessarily differentiable with a positive and absolutely continuous derivative. The cumulative absolute risk aversion function, which is defined as the negative of the...
Persistent link: https://www.econbiz.de/10005788924
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Measuring Risk Attitudes in a Natural Experiment: Data from the Television Game Show LINGO
Beetsma, Roel; Schotman, Peter C - C.E.P.R. Discussion Papers - 1998
We use data from a television game show, involving elementary lotteries and substantial prize money, as a natural experiment to measure risk attitudes. We find robust evidence of substantial risk aversion. As an extension, we esimate the various models using transformations of the ‘true’...
Persistent link: https://www.econbiz.de/10005661826
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Some Social Welfare Implications of Behavioural Preferences
Gallice, Andrea - C.E.P.R. Discussion Papers - 2007
We investigate how the assumption that individuals are characterized by some recent forms of behavioural preferences changes the analysis of an otherwise classical welfare problem, namely the optimal allocation of a scarce resource among a finite number of claimants. We consider two preference...
Persistent link: https://www.econbiz.de/10005497756
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Trading and Enforcing Patent Rights
Galasso, Alberto; Schankerman, Mark; Serrano, Carlos - C.E.P.R. Discussion Papers - 2011
transactions should increase litigation risk. We identify a new source of gains from trade, comparative advantage in patent … enforcement, and show that transactions driven by this motive should reduce litigation. Using data on trade and litigation of … effect of trade on litigation. We find that taxes strongly affect patent transactions, and that reallocation of patent rights …
Persistent link: https://www.econbiz.de/10009322505
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Patent Suits: Do They Distort Research Incentives?
Lanjouw, Jenny; Schankerman, Mark - C.E.P.R. Discussion Papers - 1998
This paper shows that the process of enforcing patent rights both dilutes and distorts Research and Development (R&D) incentives. We examine the characteristics of litigated patents by combining, for the first time, information about patent case filings from the US district courts with detailed...
Persistent link: https://www.econbiz.de/10005124091