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Neural Activity Reveals Preferences Without Choices
Smith, Alec - 2013
neural responses to the pertinent prospects when they are not engaged in actual decision making. The ability to make such …
Persistent link: https://www.econbiz.de/10013078307
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Preference Parameters and Behavioral Heterogeneity : An Experimental Approach in the Health and Retirement Survey
Barsky, Robert; Kimball, Miles S.; Juster, F. Thomas; … - 2021
Individuals' preferences underlying most economic behavior are likely to display substantial heterogeneity. This paper reports on direct measures of preference parameters relating to risk tolerance, time preference, and intertemporal substitution. These experimental measures are based on survey...
Persistent link: https://www.econbiz.de/10013210685
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An Optimizing Neuroeconomic Model of Discrete Choice
Woodford, Michael - 2014
A model is proposed in which stochastic choice results from noise in cognitive processing rather than random variation in preferences. The mental process used to make a choice is nonetheless optimal, subject to a constraint on available information-processing capacity that is partially motivated...
Persistent link: https://www.econbiz.de/10013058697
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Uncertainty Equivalents : Testing the Limits of the Independence Axiom
Andreoni, James - 2011
-Expected Utility theories, we strongly reject Prospect Theory probability weighting, we support disappointment aversion if amended to …There is convincing experimental evidence that Expected Utility fails, but when does it fail, how severely, and for … Expected Utility performs well away from certainty, but fails near certainty for about 40% of subjects. Comparing non …
Persistent link: https://www.econbiz.de/10013121044
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Scarcity of Ideas and R&D Options : Use it, Lose it or Bank it
Erkal, Nisvan - 2014
We investigate rewards to R&D in a model where substitute ideas for innovation arrive to random recipients at random times. By foregoing investment in a current idea, society as a whole preserves an option to invest in a better idea for the same market niche, but with delay. Because successive...
Persistent link: https://www.econbiz.de/10013071185
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International Portfolio Diversification with Generalized Expected Utility Preferences
Aizenman, Joshua - 2008
expected utility (GEU) to the diversification of agents who maximize the conventional expected utility (EU). Specifically, we … derive the patterns of diversification for agents who maximize a rank-dependent' expected utility, attaching more weight to … bad' than to good' outcomes, in contrast to the probability weights used in a conventional expected utility maximization …
Persistent link: https://www.econbiz.de/10012774958
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Self-Fulfilling Debt Dilution : Maturity and Multiplicity in Debt Models
Aguiar, Mark - 2018
We establish that creditor beliefs regarding future borrowing can be self-fulfilling, leading to multiple equilibria with markedly different debt accumulation patterns. We characterize such indeterminacy in the Eaton-Gersovitz sovereign debt model augmented with long maturity bonds. Two...
Persistent link: https://www.econbiz.de/10012916901
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Explaining the Rise in Youth Suicide
Cutler, David M.; Glaeser, Edward L.; Norberg, Karen - 2021
Suicide rates among youths aged 15-24 have tripled in the past half-century, even as rates for adults and the elderly have declined. And for every youth suicide completion, there are nearly 400 suicide attempts. This paper examines the dynamics of youth suicide attempts and completions, and...
Persistent link: https://www.econbiz.de/10013249547
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Who Owns Children and Does it Matter?
Schoonbroodt, Alice - 2010
Is there an economic rationale for pronatalist policies? In this paper we propose and analyze a particular market failure that may lead to inefficiently low equilibrium fertility and therefore to a need for government intervention. The friction we investigate is related to the ownership of...
Persistent link: https://www.econbiz.de/10013148673
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Voluntary Provision of Public Goods for Bads : A Theory of Environmental Offsets
Kotchen, Matthew J. - 2014
This paper examines voluntary provision of a public good that is motivated, in part, to compensate for other activities that diminish the public good. Markets for environmental offsets, such as those that promote carbon neutrality to minimize the impact of climate change, provide an increasingly...
Persistent link: https://www.econbiz.de/10012751722