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Ambiguity aversion in the long run: Repeated decisions under risk and uncertainty

Liu, Hsin-Hsien; Colman, Andrew M. - 2009

In two experiments, decision makers chose between risky and ambiguous gambles under conditions of both single (unrepeated) and multiply repeated choices. The gambles were presented either as modified Ellsberg urn choices or as marketing strategy decisions. In both experiments, decision makers...

Persistent link: https://www.econbiz.de/10009474946

Subjective Beliefs and Ex Ante Trade

Rigotti, Luca; Shannon, Chris; Strzalecki, Tomasz - 2008

theorems. When aggregate uncertainty is absent, our results show that full insurance is efficient if and only if agents share …

Persistent link: https://www.econbiz.de/10009431968

Exercise strategies for American exotic options under ambiguity

Chudjakow, Tatjana; Vorbrink, Jörg - 2009

We analyze several exotic options of American style in a multiple prior setting and study the optimal exercise strategy from the perspective of an ambiguity averse buyer in a discrete time model of Cox-Ross-Rubinstein style. The multiple prior model relaxes the assumption of a known distribution...

Persistent link: https://www.econbiz.de/10009452559

Essays in Financial Econometrics

Park, Joon Y. (contributor) - 2009

I consider continuous time asset pricing models with stochastic differential utilityincorporating decision makers' concern with ambiguity on true probability measure.In order to identify and estimate key parameters in the models, I use a novel econometricmethodology developed recently by Park...

Persistent link: https://www.econbiz.de/10009464835

Ignorance is bliss: the information malleability effect

Mishra, Himanshu Kumar - 2006

In this dissertation, I propose that, post-action, people tend to be more optimistic about outcomes when their actions were based on malleable (vague) information compared to when their actions were based on unmalleable (precise) information. However, pre-action, no such difference occurs. I...

Persistent link: https://www.econbiz.de/10009466032

14.123 Microeconomic Theory III, Spring 2009

Eso, Peter - 2009

This half-semester course discusses decision theory and topics in game theory. We present models of individual decision-making under certainty and uncertainty. Topics include preference orderings, expected utility, risk, stochastic dominance, supermodularity, monotone comparative statics,...

Persistent link: https://www.econbiz.de/10009432546

MANAGING CATASTROPHIC RISK BY ALTERNATIVE RISK TRANSFER INSTRUMENTS

Ou Yang, Chieh - 2010

that parimutuel insurance intrinsically leads to participants being underinsured due to basis risk. Although participants … will be underinsured, parimutuel insurance guarantees no underlying risk borne by the issuer. We also derive the equivalent … transaction costs of traditional insurance relative to HuRLOs. The actual transaction cost for traditional insurance is found to …

Persistent link: https://www.econbiz.de/10009439051

The effective manager, 1998-05-01, tape 1

Drucker, Peter F. (Peter Ferdinand) - 1998

learning statistics and gives a brief history of mathematics and statistics. He then explains that insurance made the modern … economy possible because it allowed people to take economic risks. He then states that the basic assumptions of insurance are …

Persistent link: https://www.econbiz.de/10009429639

14.661 Labor Economics I, Fall 2006

Pischke, Jorn-Steffen; Angrist, Joshua - 2006

Neoclassical analysis of the labor market and its institutions. A systematic development of the theory of labor supply, labor demand, and human capital. Topics discussed also include wage and employment determination, turnover, search, immigration, unemployment, equalizing differences, and...

Persistent link: https://www.econbiz.de/10009432547

Risk Classification and Competition on Insurance Markets

Beschorner, Patrick Frank Ernst - 2004

Along with the creation of the European single insurance market in1994 the German insurance market was liberalized … losscharacteristics of its customers. These effects explain whyinformational constraints and market power are immanent oninsurance markets.Insurance … appropriate insurance premium will induce an efficientuse of prevention by the customers. Information constraints mayinhibit the …

Persistent link: https://www.econbiz.de/10009433728