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The ratio bias phenomenon: fact or artifact?
Lefèbvre, Mathieu; Vieider, Ferdinand M.; Villeval, … - 2009
The ratio bias - according to which individuals prefer to bet on probabilities expressed as a ratio of large numbers to normatively equivalent or superior probabilities expressed as a ratio of small numbers - has recently gained momentum, with researchers especially in health economics...
Persistent link: https://www.econbiz.de/10010277022
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Incentive effects on risk attitude in small probability prospects
Lefèbvre, Mathieu; Vieider, Ferdinand M.; Villeval, … - 2009
prospects in a laboratory experiment. Under low stakes, we find the typical risk seeking behavior for small probabilities …
Persistent link: https://www.econbiz.de/10010277023
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A parametric analysis of prospect theory's functionals for the general population
Booij, Adam S.; van Praag, Bernard M. S.; van de … - 2009
This paper presents the results of an experiment that completely measures the utility function and probability …
Persistent link: https://www.econbiz.de/10010277017
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Prospect Theory and Tax Evasion: A Reconsideration of the Yitzhaki Puzzle
Piolatto, Amedeo; Rablen, Matthew D. - 2013
The standard expected utility model of tax evasion predicts that evasion is decreasing in the marginal tax rate (the Yitzhaki puzzle). The existing literature disagrees on whether prospect theory overturns the puzzle. We disentangle four distinct elements of prospect theory and find loss...
Persistent link: https://www.econbiz.de/10010328988
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Household Portfolio Choice, Reference Dependence, and the Marriage Market
Li, Wenchao; Song, Changcheng; Xu, Shu; Yi, Junjian - 2017
This paper bridges the financial market and the marriage market using a reference-dependent mechanism. Male-biased sex ratios induce families with sons to hold more risky assets, since competitive marital payment in a tight market raises the reference level of marriage expenditure for such...
Persistent link: https://www.econbiz.de/10011653256
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The Effect of Relative Concern on Life Satisfaction: Relative Deprivation and Loss Aversion
Leites, Martin; Ramos, Xavier - 2018
Income comparisons are important for individual well-being. We examine the shape of the relationship between relative income and life satisfaction, and test empirically if the features of the value function of prospect theory carry on to experienced utility. We draw on a unique dataset for a...
Persistent link: https://www.econbiz.de/10011873408
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Loss aversion and labor supply
Goette, Lorenz; Huffman, David; Fehr, Ernst - 2003
In many occupations workers? labor supply choices are constrained by institutional rules regulating labor time and effort provision. This renders explicit tests of the neoclassical theory of labor supply difficult. Here we present evidence from studies examining labor supply responses in...
Persistent link: https://www.econbiz.de/10010261634
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Narrow bracketing and dominated choices
Rabin, Matthew; Weizsäcker, Georg - 2007
An experiment by Tversky and Kahneman (1981) illustrates that people's tendency to evaluate risky decisions separately …. The theory is accompanied by both a real-stakes laboratory experiment and a large-sample survey from the general U ….S. population. Replicating Tversky and Kahneman's original experiment where decisionmakers with prototypical prospect …
Persistent link: https://www.econbiz.de/10010268303
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Explaining the favorite-longshot bias: Is it risk-love or misperceptions?
Snowberg, Erik; Wolfers, Justin - 2010
The favorite-longshot bias describes the longstanding empirical regularity that betting odds provide biased estimates of the probability of a horse winning - longshots are overbet, while favorites are underbet. Neoclassical explanations of this phenomenon focus on rational gamblers who overbet...
Persistent link: https://www.econbiz.de/10010269869
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Preferences and COVID-19 Vaccination Intentions
Blondel, Serge; Langot, François; Mueller, Judith E.; … - 2021
This paper shows that prospect theory, extended to account for differences across individuals in their patience and their valuation of the vaccination as a common good can explain why more than 40% of the population has intent to reject the Covid-19 vaccination, as well as the differences in...
Persistent link: https://www.econbiz.de/10012882399