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The dead anyway effect revis(it)ed
Breyer, Friedrich; Felder, Stefan - 2002
In the expected-utility theory of the monetary value of a statistical life, the so-called "dead-anyway" effect …
Persistent link: https://www.econbiz.de/10010260809
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An Experimental Investigation of the Role of Errors for Explaining Violations of Expected Utility
Neugebauer, Tibor; Schmidt, Ulrich - 2003
One possible conclusion from recent experimental research on decision making under risk is that observed behaviour can be reasonable accommodated by expected utility plus an error term. This conclusion implies that the violation rate of expected utility should decrease if errors are excluded....
Persistent link: https://www.econbiz.de/10010261667
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An Experimental Investigation of Alternatives to Expected Utility Using Pricing Data
Morone, Andrea; Schmidt, Ulrich - 2006
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 nonexpected utility theories. The present paper performs a similar analysis which relies on pricing data instead of...
Persistent link: https://www.econbiz.de/10010296261
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An economic index of riskiness
Aumann, Robert J.; Serrano, Roberto - 2006
Define the riskiness of a gamble as the reciprocal of the absolute risk aversion (ARA) of an individual with constant ARA who is indifferent between taking and not taking that gamble. We characterize this index by axioms, chief among them a “duality” axiom which, roughly speaking, asserts...
Persistent link: https://www.econbiz.de/10010318897
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Risk Aversion and the Subjective Time Discount Rate: A Joint Approach
van Praag, Bernard M.S.; 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/10010324926
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An Experimental Investigation of Alternatives to Expected Utility Using Pricing Data
Schmidt, Ulrich; Morone, Andrea - 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 nonexpected utility theories. The present paper performs a similar analysis which relies on pricing data instead of...
Persistent link: https://www.econbiz.de/10010278003
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Weitzman meets Nordhaus: Expected utility and catastrophic risk in a stochastic economy-climate model
Ikefuji, Masako; Laeven, Roger J. A.; Magnus, Jan R.; … - 2011
We specify a stochastic economy-climate model, adapting Nordhaus' deterministic economy-climate model by allowing for Weitzman-type stochasticity. We show that, under expected power utility, the model is fragile to heavy-tailed distributional assumptions and we derive necessary and sufficient...
Persistent link: https://www.econbiz.de/10010332432
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Explaining the harmonic sequence paradox
Schmidt, Ulrich; Zimper, Alexander - 2011
implausible for finite payoffs levels, expected utility theory - as well as its standard generalizations such as cumulative … prospect theory - are apparently unable to explain a finite willingness-to-pay. The present paper presents first an …
Persistent link: https://www.econbiz.de/10010278013
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Formal vs. informal protection instruments and the strategic use of patents in an Expected-Utility framework
Neuhäusler, Peter - 2009
with varying mechanisms. Against the background of the Expected-Utility Theory (EU-Theory), firms are differentiated by … their size, technological field and their degree of internationalization. According to the EU-Theory modelling, it is …
Persistent link: https://www.econbiz.de/10010299401
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The Demand for Insurance: Expected Utility Theory from a Gain Perspective
Nyman, John A. - 2001
Expected utility theory holds that the demand for insurance is a demand for certainty, because under the conventional … specification of the theory, it appears as if buyers of insurance prefer certain losses to actuarially equivalent uncertain ones … paper attempts to reconcile expected utility theory with this empirical evidence by suggesting that insurance is demanded to …
Persistent link: https://www.econbiz.de/10010263364