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This paper empirically analyzes moral hazard in car insurance using a dynamic theory of an insuree's dynamic risk (ex … ante moral hazard) and claim (ex post moral hazard) choices and Dutch longitudinal micro data. We use the theory to …
Persistent link: https://www.econbiz.de/10011376656
that theory predicts an inversion when consumers are either risk or loss averse. In those cases, an increase in price …Do the choices of consumers who search for a product's best price exhibit risk neutral, risk averse or loss averse risk … pay for continued search and the level of price uncertainty depends on her risk preferences. Independent of the current …
Persistent link: https://www.econbiz.de/10011520488
We show that if an agent is uncertain about the precise form of his utility function, his actual relative risk aversion … may depend on wealth even if he knows his utility function lies in the class of constant relative risk aversion (CRRA … their risk aversion parameter invest less in risky assets than wealthy investors with identical risk aversion uncertainty. …
Persistent link: https://www.econbiz.de/10011382430
creating a link. However, the interplay of such uncertainty and risk attitudes has been neglected in the network formation …, incomplete information, and risk aversion. The model predicts that an agent's risk aversion is correlated with her network …
Persistent link: https://www.econbiz.de/10011386449
Firms hiring fresh graduates face uncertainty on the future productivity of workers. Theory suggests that starting … if the variance of exam grades is higher and higher if the skew is higher: employers shift the cost of productivity risk … to new hires, but pay for the opportunity to catch a really good worker. Estimating the extent of risk cost sharing …
Persistent link: https://www.econbiz.de/10011378868
The analysis in this paper shows that unpredictable variations in economic productivity may have a positive or negative effect on the average growth rate of output. This theoretical ambiguity result is not solely determined by the value of the elasticity of intertemporal substitution (of...
Persistent link: https://www.econbiz.de/10011343279
This paper demonstrates that well-established biases in decision making under uncertainty can generate poverty traps. A theoretical framework is developed to demonstrate that: i) probability weighting and ambiguity attitude can lead individuals to erroneously undervalue profitable investments,...
Persistent link: https://www.econbiz.de/10015062969
Persistent link: https://www.econbiz.de/10003762635
with real monetary rewards conduEted among students in South Africa to estimate risk and time preferences. These …. (2002, 2005), show that HIV+ agents and participants that perceive to have a high HIV contraction risk are less risk … time preference are not considered simultaneously. We correct for differential mortality risk, risk aversion and …
Persistent link: https://www.econbiz.de/10011373818
Dominance and further toDecreasing Absolute and Increasing Relative Risk Aversion Stochastic Dominance. The efficient sets …
Persistent link: https://www.econbiz.de/10011379506