Similar Search Results

Kos, Nenad; Messner, Matthias - 2015

We study optimal selling strategies of a seller who is poorly informed about the buyer’s value for the object. When the maxmin seller only knows that the mean of the distribution of the buyer’s valuations belongs to some interval then nature can keep him to payoff zero no matter how much...

Persistent link: https://www.econbiz.de/10011307115

Econographics

Chapman, Jonathan; Dean, Mark; Ortoleva, Pietro; … - 2018

We study the pattern of correlations across a large number of behavioral regularities, with the goal of creating an empirical basis for more comprehensive theories of decision-making. We elicit 21 behaviors using an incentivized survey on a representative sample (n = 1;000) of the U.S....

Persistent link: https://www.econbiz.de/10011931952

The Design of Ambiguous Mechanisms

Di Tillio, Alfredo; Kos, Nenad; Messner, Matthias - 2014

This paper explores the sale of an object to an ambiguity averse buyer. We show that the seller can increase his profit by using an ambiguous mechanism. That is, the seller can benefit from hiding certain features of the mechanism that he has committed to from the agent. We then characterize the...

Persistent link: https://www.econbiz.de/10010398538

Estimating Individual Ambiguity Aversion: A Simple Approach

Gneezy, Uri; Imas, Alex; List, John A. - 2015

We introduce a simple, easy to implement instrument for jointly eliciting risk and ambiguity attitudes. Using this instrument, we structurally estimate a two-parameter model of preferences. Our findings indicate that ambiguity aversion is significantly overstated when risk neutrality is assumed....

Persistent link: https://www.econbiz.de/10010500387

Ambiguity Aversion is the Exception

Kocher, Martin G.; Lahno, Amrei M.; Trautmann, Stefan T. - 2015

An extensive literature has studied ambiguity aversion in economic decision making, and how ambiguity aversion can account for empirically observed violations of expected utility-based theories. Almost all relevant applied models presume a general dislike of ambiguity. In this paper, we provide...

Persistent link: https://www.econbiz.de/10010500429

A Theory of Experimenters

Banerjee, Abhijit; Chassang, Sylvain; Montero, Sergio; … - 2017

This paper proposes a decision-theoretic framework for experiment design. We model experimenters as ambiguity-averse decision-makers, who make trade-offs between subjective expected performance and robustness. This framework accounts for experimenters’ preference for randomization, and...

Persistent link: https://www.econbiz.de/10011744984

On the Psychological Foundations of Ambiguity and Compound Risk Aversion

Wu, Keyu; Fehr, Ernst; Hofland, Sean; Schonger, Martin - 2024

Ambiguous prospects are ubiquitous in social and economic life, but the psychological foundations of behavior under ambiguity are still not well understood. One of the most robust empirical regularities is the strong correlation between attitudes towards ambiguity and compound risk which...

Persistent link: https://www.econbiz.de/10015047223

Redistribution and Insurance with Simple Tax Instruments

Findeisen, Sebastian; Sachs, Dominik - 2015

provide a novel decomposition of labor income tax formulas into a redistribution and an insurance component. The latter is … capital tax is non-zero and trades off redistribution and insurance against savings distortions. Our quantitative results … reveal that the insurance component contributes significantly to optimal labor tax rates and provides an informative lower …

Persistent link: https://www.econbiz.de/10011307074

Buffer-Stock Saving and Households' Response to Income Shocks

Fella, Giulio; Frache, Serafin; Koeniger, Winfried - 2016

contained in the joint dynamics of income, consumption and wealth to quantify the degree of insurance against income risk. The … Italian households do not have access to significant insurance beyond self-insurance. …

Persistent link: https://www.econbiz.de/10011555586

Non-cooperative and Cooperative Policy Reforms under Uncertainty and Spillovers

Hefeker, Carsten; Neugart, Michael - 2017

When countries need to implement costly economic policy reforms, these often imply uncertainties about their effectiveness for the home country and their spillovers to other countries. We develop a model to show that under these circumstances countries implement too few or too many policy...

Persistent link: https://www.econbiz.de/10011615884