Showing 1 - 10 of 183
consequences. Although risk preferences are likely important, existing research is silent about how social and risk preferences … not exposed to risk while beneficiaries' final earnings may be larger or smaller than the allocation itself, depending on … the realized state of the world. In a second experiment, risk affects the earnings of givers but not of beneficiaries. We …
Persistent link: https://www.econbiz.de/10012966905
fully subsidises the cost of the good needed for working, then commodity taxation is uniform under the standard separability …
Persistent link: https://www.econbiz.de/10010877771
We study how the distribution of other-regarding preferences develops with age. Based on a set of allocation choices, we can classify each of 717 subjects, aged 8 to 17 years, as either egalitarian, altruistic, or spiteful. Varying the allocation recipient as either an in-group or an out-group...
Persistent link: https://www.econbiz.de/10008853854
The theory of expected utility maximization (EUM) proposed by Bernoulli explains risk aversion as a consequence of … from the terms offered; and subjects often appear to be too risk averse with regard to small gambles (while still accepting … from judgments based on imprecise (and noisy) mental representation of the decision situation. In this model, risk aversion …
Persistent link: https://www.econbiz.de/10012956867
This paper reports results from a classroom dictator game comparing the effects of three different sets of standard instructions. The results show that seemingly small differences in instructions induce fundamentally different perceptions regarding entitlement. Behavior is affected accordingly,...
Persistent link: https://www.econbiz.de/10012915458
This research explores the origins of loss aversion and the variation in its prevalence across regions, nations and ethnic group. It advances the hypothesis and establishes empirically that the evolution of loss aversion in the course of human history can be traced to the adaptation of...
Persistent link: https://www.econbiz.de/10012920767
this phenomenon focus on rational gamblers who overbet longshots due to risk-love. The competing behavioral explanations …
Persistent link: https://www.econbiz.de/10013133607
This study explores people's risk attitudes after having suffered large real-world losses following a natural disaster … is consistent with prospect theory predictions of the adoption of a risk-seeking attitude after a loss …
Persistent link: https://www.econbiz.de/10013103582
We show that professional soccer players exhibit reference-dependent behavior during matches. Controlling for the state of the match and for unobserved heterogeneity, we show on a minute-by-minute basis that a player breaches the rules of the game, measured by the referee's assignment of cards,...
Persistent link: https://www.econbiz.de/10013105143
This paper examines the measurement of social welfare, poverty and inequality taking into account reference-dependence, loss aversion and diminishing sensitivity — aspects emphasized in Prospect Theory — to social welfare measurement. We suggest a new notion of equivalent income, the income...
Persistent link: https://www.econbiz.de/10013086978