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"Let me dream on!" : anticipatory emotions and preference for timing in lotteries
Kocher, Martin; Krawczyk, Michal; Winden, Frans A. A. M. van - 2009 - This version: September 2009
We analyze one of the explanations why people participate in lotteries. Our hypothesis stipulates that part of the value that a unit of money buys in lotteries is consumed before the actual resolution in the form of emotions such as hope. In other words, a person holding a lottery ticket may...
Persistent link: https://www.econbiz.de/10011379382
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What Simon says
Heukelom, Floris - 2006
This paper provides an overview of the work of Herbert Simon and his ideas about rational decision making. By his own …’s research is how human beings organize themselves in different structures of distributed decision making in order to achieve a … view on rational decision making in economics and other social sciences. …
Persistent link: https://www.econbiz.de/10011350370
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Deal or no deal? : decision-making under risk in a large-payoff game show
Post, Thierry; Baltussen, Guido; Assem, Martijn J. van den - 2006
We examine the risky choices of contestants in the popular TV game show “Deal or No Deal” and related classroom experiments. Contrary to the traditional view of expected utility theory, the choices can be explained in large part by previous outcomes experienced during the game. Risk aversion...
Persistent link: https://www.econbiz.de/10011348343
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Discounting the future : on climate change, ambiguity aversion and Epstein-Zin preferences
Olijslagers, Stan; Wijnbergen, Sweder van - 2019
We focus on the effect of preference specifications on the current day valuation of future outcomes. Specifically, we analyze the effect of risk aversion, ambiguity aversion and the elasticity of intertemporal substitution on the willingness to pay to avoid climate change risk. The first part of...
Persistent link: https://www.econbiz.de/10012024032
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Probabilistic choice and congestion pricing with heterogeneous travellers and price-sensitive demand
Koster, Paul; Verhoef, Erik T.; Shepherd, Simon; … - 2014
This paper deals with first-best and second-best congestion pricing of a stylised two-link network with probabilistic route choice of travellers. Travellers may have heterogeneous values of travel times and may differ in their idiosyncratic route preferences. We derive first-best and second-best...
Persistent link: https://www.econbiz.de/10010370658
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Decision making in incomplete markets with ambiguity : a case study of a gas field acquisition
Zhao, Lin; Wijnbergen, Sweder van - 2014
We apply utility indifference pricing to solve a contingent claim problem, valuing a connected pair of gas fields where the underlying process is not standard Geometric Brownian motion and the assumption of complete markets is not fulfilled. First, empirical data are often characterized by...
Persistent link: https://www.econbiz.de/10010465169
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On the optimality of decisions
Berk, Jan Marc; Bierut, Beata - 2004
heterogeneity of committee members, this voting rule is suboptimal in terms of the quality of the interest rate decision, but …
Persistent link: https://www.econbiz.de/10011342577
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Risk aversion and the subjective time discount rate : a joint approach
Praag, Bernard M. S. van; Booij, Adam S. - 2003
In this paper we analyze a large sample of individual responses to six lottery questions. Wederive a simultaneous estimate of risk aversion ? and the time preference discount rate ? perindividual. This can be done because the consumption of a large prize is smoothed over a largertime period. It...
Persistent link: https://www.econbiz.de/10011333268
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Valuation of travel time and travelIer information
Rietveld, Piet - 2003
The value of travel time plays an important role in cost benefit analysis of infrastructureprojects. However, the issue of uncertainty on travel times and the implications this has forestimations of travel time values has received much less attention in the literature. In thispaper we compare...
Persistent link: https://www.econbiz.de/10011333900
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Loss modification incentives for insurers under expected utility and loss aversion
Soetevent, Adriaan R.; Zhou, Liting - 2014
Given the possibility to modify the probability of a loss, will a profit-maximizing insurer engage in loss prevention or is it in his interest to increase the loss probability? This paper investigates this question. First, we calculate the expected profit maximizing loss probability within an...
Persistent link: https://www.econbiz.de/10010395085