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The Distribution of Ambiguity Attitudes
Gaudecker, Hans-Martin von; Wogrolly, Axel; Zimpelmann, … - 2022
This paper analyzes the stability and distribution of ambiguity attitudes using a broad population sample. Using high-powered incentives, we collected six waves of data on ambiguity attitudes about financial markets—our main application—and climate change. Estimating a structural stochastic...
Persistent link: https://www.econbiz.de/10014241994
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A Comparison of Regret Theory and Salience Theory for Decisions under Risk
Herweg, Fabian - 2020
Two non-transitive theories to model decision making under risk are regret theory (Loomes and Sugden, 1982, 1987) and … salience theory (Bordalo, Gennaioli, and Shleifer, 2012). While the psychological underpinning of these two approaches is … of choice behavior. We investigate the overlap between these theories and show that original regret theory (Loomes and …
Persistent link: https://www.econbiz.de/10012850081
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Agreed and Disagreed Uncertainty
Gambetti, Luca; Tsoukalas, John D.; Korobilis, Dimitris; … - 2023
When agents’ information is imperfect and dispersed, existing measures of macroeconomic uncertainty based on the forecast error variance have two distinct drivers: the variance of the economic shock and the variance of the information dispersion. The former driver increases uncertainty and...
Persistent link: https://www.econbiz.de/10014348100
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Loss Aversion, Risk Aversion, and the Shape of the Probability Weighting Function
Rablen, Matthew D. - 2023
extend to distinct PWFs in the gain and loss domains, as under prospect theory …
Persistent link: https://www.econbiz.de/10014350127
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Approximate Expected Utility Rationalization
Echenique, Federico - 2019
deviation (in beliefs, utility, or perceived prices) is within e of expected utility theory. The number e can then be used as a … distance to the theory. We apply our methodology to three recent large-scale experiments. Many subjects in those experiments …
Persistent link: https://www.econbiz.de/10012892237
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Risk Matters : Breaking Certainty Equivalence
Parra-Alvarez, Juan Carlos - 2020
In this paper we use the property that certainty equivalence, as implied by a first-order approximation to the solution of stochastic discrete-time models, breaks in its equivalent continuous-time version. We study the extent to which a first-order approximated solution built by perturbation...
Persistent link: https://www.econbiz.de/10012834991
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Trust, Happiness, and Pro-Social Behavior
Carattini, Stefano - 2020
This paper combines several large-scale surveys with different identification strategies to shed new light on the determinants of cooperative behavior. We provide evidence indicating that the well-being maximizing level of trust is above the income maximizing level. Higher trust is also linked...
Persistent link: https://www.econbiz.de/10012822497
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The Quasilinear Quadratic Utility Model : An Overview
Choné, Philippe - 2019
The quasi-linear quadratic utility model is widely used in economics. The knowledge of its exact origin is less widespread. A first contribution of the paper is to explain the genesis of this model. Next, we review the main properties of the general model, mainly following the previous...
Persistent link: https://www.econbiz.de/10012866406
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Satisfaction with Amenities and Taste for Revolt in the Middle East
Gholipour, Hassan F.; Farzanegan, Mohammad Reza - 2023
The purpose of this study is to explore the relationship between individuals’ satisfaction with amenities and … infrastructure) and applying Probit regressions, our results show that satisfaction with amenities and environmental quality … more pronounced in urban areas, particularly in large cities. We also find that individuals’ satisfaction with amenities …
Persistent link: https://www.econbiz.de/10014347827
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Happy Times : Measuring Happiness Using Response Times
Liu, Shuo; Netzer, Nick - 2023
Surveys that measure subjective states like happiness or preferences often generate discrete ordinal data. Ordered response models, which are commonly used to analyze such data, suffer from a fundamental identification problem. Their conclusions depend on unjustified assumptions about the...
Persistent link: https://www.econbiz.de/10014358107