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International Environmental Agreements with Uncertainty, Learning and Risk Aversion

Finus, Michael - 2014

This paper analyses the formation of international environmental agreements (IEAs) under uncertainty, focusing on the role of learning and risk aversion. It bridges two strands of literature: one focused on the role learning for the success of IEA formation when countries are risk neutral and...

Persistent link: https://www.econbiz.de/10013059058

When is Ambiguity-Attitude Constant?

Eichberger, Jürgen; Grant, Simon; Kelsey, David - 2021

This paper studies how updating affects ambiguity-attitude. In particular we focus on the generalized Bayesian update of the Jaffray-Phillipe sub-class of Choquet Expected Utility preferences. We find conditions for ambiguity-attitude to be the same before and after updating. A necessary and...

Persistent link: https://www.econbiz.de/10013315928

Beliefs and Utility : Experimental Evidence on Preferences for Information

Falk, Armin - 2016

Beliefs are a central determinant of behavior. Recent models assume that beliefs about or the anticipation of future consumption have direct utility consequences. This gives rise to informational preferences, i.e., preferences over the timing and structure of information. Using a novel and...

Persistent link: https://www.econbiz.de/10012981291

Rank Dependent Utility, Tax Evasion and Labor Supply

Eide, Erling - 2010

payers act according to some non-expected utility theory, and (2) Individual ethical norms and social stigma induce people … subjective probabilities of being penalised according to the rank dependent utility theory, and (2) Tax payers' beliefs about … utility theory. The model explains data 53% better than pure random choices and predicts hours worked in the regular economy …

Persistent link: https://www.econbiz.de/10013136684

Risk Aversion and Prudence in Contests

Sahm, Marco - 2017

I examine the impact of risk preferences on efforts and winning probabilities in generalised Tullock contests between two players. The theoretical analysis yields two main results. First, I specify a sufficient condition on the agents' comparative prudence under which a higher common level of...

Persistent link: https://www.econbiz.de/10012956876

Dark Clouds or Silver Linings? Knightian Uncertainty and Climate Change

Chen, Yu-Fu - 2013

This paper examines the impact of Knightian uncertainty upon optimal climate policy through the prism of a continuous-time real option modelling framework. We analytically determine optimal intertemporal climate policies under ambiguity. Additionally, numerical simulations are provided to...

Persistent link: https://www.econbiz.de/10013092649

Booms, Recessions and Financial Turmoil : A Fresh Look at Investment Decisions under Cyclical Uncertainty

Chen, Yu-Fu - 2009

The paper studies the interaction between cyclical uncertainty and investment in a stochastic real option framework where demand shifts stochastically between three different states, each with different rates of drift and volatility. In our setting the shifts are governed by a three-state Markov...

Persistent link: https://www.econbiz.de/10013156881

Noblesse Oblige? Determinants of Survival in a Life and Death Situation

Frey, Bruno S. - 2008

This paper explores the determinants of survival in a life-and-death situation created by an external and unpredictable shock. We are interested in seeing whether pro-social behaviour matters in such extreme situations. We therefore focus on the sinking of the RMS Titanic as a quasi-natural...

Persistent link: https://www.econbiz.de/10012769705

Merchants of Doubt : Corporate Political Influence When Expert Credibility is Uncertain

Chiroleu-Assouline, Mireille - 2016

A key role of science-based non-governmental organizations (NGOs) is to communicate scientific knowledge to policymakers. However, recent evidence has emerged showing that industry-backed groups often attempt to undermine the credibility of such NGOs and weaken their ability to influence policy....

Persistent link: https://www.econbiz.de/10012977549

Legal Uncertainty as a Welfare Enhancing Screen

Lang, Matthias - 2016

Consider legal uncertainty as uncertainty about the legality of a specific action. In particular, suppose that the threshold of legality is uncertain. I show that this legal uncertainty raises welfare. Legal uncertainty changes deterrence in opposite directions. The probability of conviction...

Persistent link: https://www.econbiz.de/10012977556

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