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Asymmetrically dominated alternatives and random incentive mechanisms

Schmidt, Ulrich - 2010

This note presents an experimental study of the random lottery incentive mechanism. In the baseline treatment we observe risk behavior in a given choice problem. We show that by integrating a second, asymmetrically dominated choice problem in a random incentive mechanism risk behavior can be...

Persistent link: https://www.econbiz.de/10010278010

Explaining the harmonic sequence paradox

Schmidt, Ulrich; Zimper, Alexander - 2011

According to the harmonic sequence paradox (Blavatskyy 2006), an expected utility decision maker's willingness-to-pay for a gamble whose expected payoffs evolve according to the harmonic series is finite if and only if his marginal utility of additional income becomes zero for rather low payoff...

Persistent link: https://www.econbiz.de/10010278013

Pricing risk and ambiguity: The effect of perspective taking

Trautmann, Stefan T.; Schmidt, Ulrich - 2011

There is a large literature showing that willingness-to-accept (WTA) is usually much higher than willingness-to-pay (WTP) in empirical studies although they should be roughly equal according to traditional economic theory. A second stream of literature shows that people are typically ambiguity...

Persistent link: https://www.econbiz.de/10010285717

Paradoxes and mechanisms for choice under risk

Cox, James C.; Sadiraj, Vjollca; Schmidt, Ulrich - 2011

hypothesis or the independence axiom. We report two experiments with 710 subjects. Experiment 1 provides the first simple test of … the isolation hypothesis. Experiment 2 is a crossed design with six payoff mechanisms and five lottery pairs that can … implications of alternative decision theories. Experiment 2 provides tests of the isolation hypothesis and four paradoxes. It also …

Persistent link: https://www.econbiz.de/10010285720

Efficient institutions and effective deterrence: On timing and uncertainty of formal sanctions

Buckenmaier, Johannes; Dimant, Eugen; Posten, Ann-Christin - 2021

of punishment. This paper presents the first controlled experiment to study a third important factor that has been mainly …

Persistent link: https://www.econbiz.de/10012440473

Asymmetrically Dominated Alternatives and Random Incentive Mechanisms

Schmidt, Ulrich - Institut für Weltwirtschaft (IfW) - 2010

Persistent link: https://www.econbiz.de/10008455539

An Experimental Investigation of Alternatives to Expected Utility Using Pricing Data

Morone, Andrea; Schmidt, Ulrich - Wirtschaftswissenschaftliche Fakultät, Leibniz … - 2003

Experimental research on decision making under risk has until now always employed choice data in order to evaluate the empirical performance of expected utility and the alternative non-expected utility theories. The present paper performs a similar analysis which relies on pricing data instead...

Persistent link: https://www.econbiz.de/10005464744

An Experimental Investigation of Alternatives to Expected Utility Using Pricing Data

Morone, Andrea; Schmidt, Ulrich - Max-Planck-Institut für Ökonomik, Max-Planck-Gesellschaft - 2005

Persistent link: https://www.econbiz.de/10005252188

Reconsidering the common ratio effect: The roles of compound independence, reduction, and coalescing

Schmidt, Ulrich; Seidl, Christian - 2014

effect. Relying on a simple experiment, we investigate which failure of these axioms is concomitant with the empirical …

Persistent link: https://www.econbiz.de/10010369276

The Impact of Experience on Violations of Independence and Coalescing

Schmidt, Ulrich; Birnbaum, Michael - 2014

The present paper reports a repeated experiment on decision making under risk where subjects have to tackle the same … experiment. Our analysis complements and extends Hey (2001) who analyzes for each subject the fit of several preference …

Persistent link: https://www.econbiz.de/10010396921