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In an information cascade experiment participants are confronted with artificial predecessors predicting in line with the BHW model (Bikchandani et al. 1992). Using the BDM (Becker et al., 1964) mechanism we study participants' probability perceptions based on maximum prices for participating in...
Persistent link: https://www.econbiz.de/10010263660
predicted by the prospect theory. But under high stakes, we provide some evidence that risk seeking behavior is dramatically …Most studies on the role of incentives on risk attitude report data obtained from within-subject experimental … paper reports instead between-subject results on the effect of monetary stakes on risk attitudes for small probability …
Persistent link: https://www.econbiz.de/10010277023
Two rationality arguments are used to justify the link between conditional and unconditional preferences in decision … theory: dynamic consistency and consequentialism. Dynamic consistency requires that ex ante contingent choices are respected …
Persistent link: https://www.econbiz.de/10011422198
From the perspective of competitors, competition may be modeled as a prisoner's dilemma. Setting the monopoly price is cooperation, undercutting is defection. Jointly, competitors are better off if both are faithful to a cartel. Individually, profit is highest if only the competitor(s) is (are)...
Persistent link: https://www.econbiz.de/10010281843
gamble. The properties of this gamble are likely to engage decision-makers to a greater extent than conventional abstract … salience of regret as a decision motive. …
Persistent link: https://www.econbiz.de/10010290539
We study risk attitudes, ambiguity attitudes, and time preferences of 661 children and adolescents, aged ten to …) and are less likely to save money. Experimental measures for risk and ambiguity attitudes are only weak predictors of …
Persistent link: https://www.econbiz.de/10010294843
whether this type of behavior persists when risk comes into play. I devise an experiment which sheds light on the … interrelation of risk and social preferences by measuring (1) individual risk preferences, (2) interpersonal risk preferences, and … (3) social preferences under certainty. The results reveal that a large share of subjects choose to accept more risk or …
Persistent link: https://www.econbiz.de/10010299505
We study risk attitudes, ambiguity attitudes, and time preferences of 661 children and adolescents, aged ten to …) and are less likely to save money. Experimental measures for risk and ambiguity attitudes are only weak predictors of …
Persistent link: https://www.econbiz.de/10010305955
We study in an experiment whether humans prefer to depend on decisions of other humans (social uncertainty) or states of nature (environmental uncertainty). In the social uncertainty treatments subjects depend only on past decisions of other humans. This is the first experiment that studies...
Persistent link: https://www.econbiz.de/10011419479
We investigate the decision of experimental subjects to incur the risk of revealing personal private information to … in the laboratory. We show that individual decisions to incur privacy risk are correlated with decisions to incur … monetary risk. We find that partially depriving subjects of control over the revelation of their personal information does not …
Persistent link: https://www.econbiz.de/10011562001