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Endogenous risk attitudes
Netzer, Nick; Robson, Arthur John; Steiner, Jakub; … - 2022
In a model inspired by neuroscience, we show that constrained optimal perception encodes lottery rewards using an S-shaped encoding function and over-samples low-probability events. The implications of this perception strategy for behavior depend on the decision-maker’s understanding of the...
Persistent link: https://www.econbiz.de/10012806647
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Delay aversion under a general class of preferences
Mutlu, Gulseren - In: Economics letters 121 (2013) 2, pp. 306-310
Persistent link: https://www.econbiz.de/10010347108
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Beliefs and utility : experimental evidence on preferences for information
Falk, Armin; Zimmermann, Florian - 2016
Beliefs are a central determinant of behavior. Recent models assume that beliefs about or the anticipation of future consumption have direct utilityconsequences. 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/10011523747
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Risk Preferences Are Not Time Preferences : Discounted Expected Utility with a Disproportionate Preference for Certainty
Andreoni, James - 2010
Risk and time are intertwined. The present is known while the future is inherently risky. Discounted expected utility … robust violations of discounted expected utility, inconsistent with both prospect theory probability weighting and models …
Persistent link: https://www.econbiz.de/10012462308
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Nonparametric Identification and Estimation in a Generalized Roy Model
Bayer, Patrick - 2008
-pecuniary component of utility associated with each choice alternative. Previous work has found that, without parametric restrictions or …-pecuniary component of utility associated with each choice alternative. We develop nonparametric estimators corresponding to two …
Persistent link: https://www.econbiz.de/10012464700
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Identities for maximum, minimum, and maxmin random utility models
Palma, André de; Kilani, Karim - In: Economics letters 155 (2017), pp. 135-139
Persistent link: https://www.econbiz.de/10011821632
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The Market for Conservation and Other Hostages
Harstad, Bård - 2011
A conservation good, such as the rainforest, is a hostage: it is possessed by S who may prefer to consume it, but B receives a larger value from continued conservation. A range of prices would make trade mutually beneficial. So, why doesn't B purchase conservation, or the forest, from S?
Persistent link: https://www.econbiz.de/10012461249
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Axiom preferences and choice mistakes under risk
Herweg, Fabian; Hippel, Svenja; Müller, Daniel; … - 2024
almost half of our subjects. Among those, roughly 24%are rational expected utility maximizers, 24% make occasional mistakes …
Persistent link: https://www.econbiz.de/10014556632
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Individual and collective information acquisition : an experimental study
Reshidi, Pëllumb; Lizzeri, Alessandro; Yariv, Leeat; … - 2021
Many committees - juries, political task forces, etc. - spend time gathering costly information before reaching a decision. We report results from lab experiments focused on such information-collection processes. We consider decisions governed by individuals and groups and compare how voting...
Persistent link: https://www.econbiz.de/10012697146
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Risk aversion as a perceptual bias
Khaw, Mel Win; Li, Ziang; Woodford, Michael - 2017
The theory of expected utility maximization (EUM) proposed by Bernoulli explains risk aversion as a consequence of … diminishing marginal utility of wealth. However, observed choices between risky lotteries are difficult to reconcile with EUM: for … sufficiently favorable large gambles) to be consistent with any utility-of-wealth function. We propose a unified explanation for …
Persistent link: https://www.econbiz.de/10011638247