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Time Will Tell: Recovering Preferences when Choices Are Noisy
Alós-Ferrer, Carlos; Fehr, Ernst; Netzer, Nick - 2018
The ability to uncover preferences from choices is fundamental for both positive economics and welfare analysis. Overwhelming evidence shows that choice is stochastic, which has given rise to random utility models as the dominant paradigm in applied microeconomics. However, as is well known, it...
Persistent link: https://www.econbiz.de/10011932083
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How changing prudence and risk aversion affect optimal saving
Bauer, Christian; Buchholz, Wolfgang - 2008
We show how optimal saving in a two-period model is affected when prudence and risk aversion of the underlying utility … and the pure time discount rate, there is distributional neutrality between the two periods. Otherwise, changes of risk …
Persistent link: https://www.econbiz.de/10010264467
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The Devil You Know: Rational Inattention to Discrete Choices when Prior Information Matters
Pellegrino, Bruno - 2023
risk-averse investors who select risky projects in an environment characterized by epistemic uncertainty (risk …
Persistent link: https://www.econbiz.de/10014290241
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Time Will Tell : Recovering Preferences When Choices are Noisy
Alós-Ferrer, Carlos - 2019
The ability to uncover preferences from choices is fundamental for both positive economics and welfare analysis. Overwhelming evidence shows that choice is stochastic, which has given rise to random utility models as the dominant paradigm in applied microeconomics. However, as is well known, it...
Persistent link: https://www.econbiz.de/10012892249
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The Devil You Know : Rational Inattention to Discrete Choices When Prior Information Matters
Pellegrino, Bruno - 2023
risk-averse investors who select risky projects in an environment characterized by epistemic uncertainty (risk …
Persistent link: https://www.econbiz.de/10014358846
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Optimal Stopping in a Dynamic Salience Model
Dertwinkel-Kalt, Markus - 2020
While many puzzles in static choices under risk can be explained by a preference for positive and an aversion toward …
Persistent link: https://www.econbiz.de/10012824830
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Present-Focused Preferences and Sin Goods Consumption at the Extensive and Intensive Margins
Kalamov, Zarko - 2020
This paper analyzes sin goods consumption when individuals exhibit present-focused preferences. It considers three types of present focus: present-bias with varying degrees of naiveté, Gul-Pesendorfer preferences, and a dual-self approach. We investigate the incentives to deviate from healthy...
Persistent link: https://www.econbiz.de/10012836009
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Dynamic Pricing with Search Frictions
García, Daniel - 2017
We study markets for perishable goods with search frictions. Sellers have a single unit of a good and post prices in every period. Buyers engage in costly search to observe prices and match values. In equilibrium trade starts endogenously and the volume of trade increases over time. Under mild...
Persistent link: https://www.econbiz.de/10011777630
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Long Term Care Insurance with State-Dependent Preferences
De Donder, Philippe - 2020
We study the demand for actuarially fair Long Term Care (LTC hereafter) insurance in a setting where autonomous agents … themselves, while no agent wishes to buy complete insurance. We then show that the comparison of marginal utility of income (as … opposed to consumption) across health states depends on (i) whether agents do buy LTC insurance at equilibrium or not, (ii …
Persistent link: https://www.econbiz.de/10012844210
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Playing with the good guys : a public good game with endogenous group formation
Brekke, Kjell Arne; Hauge, Karen Evelyn; Lind, Jo Thori; … - 2009
In public good games, voluntary contributions tend to start off high and decline as the game is repeated. If high contributors are matched, however, contributions tend to stay high. We propose a formalization predicting that high contributors will self-select into groups committed to charitable...
Persistent link: https://www.econbiz.de/10010276092