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The Troika paradox
Blavatskyy, Pavlo R. - In: Economics Letters 115 (2012) 2, pp. 236-239
In three binary choice problems, people reveal a choice pattern which falsifies expected utility theory and many … Allais paradox challenged neoclassical expected utility theory. …
Persistent link: https://www.econbiz.de/10010572232
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Intertemporal substitution and recursive smooth ambiguity preferences
Miao, Jianjun; Hayashi, Takashi - In: Theoretical Economics 6 (2011) 3
In this paper, we establish an axiomatically founded generalized recursive smooth ambiguity model that allows for a separation among intertemporal substitution, risk aversion, and ambiguity aversion. We axiomatize this model using two approaches: the second-order act approach à la Klibanoff,...
Persistent link: https://www.econbiz.de/10008694967
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Intertemporal substitution and recursive smooth ambiguity preferences
Miao, Jianjun; Hayashi, Takashi - Department of Economics, Boston University - 2010
In this paper, we establish an axiomatically founded generalized recursive smooth ambiguity model that allows for a separation among intertemporal substitution, risk aversion, and ambiguity aversion. We axiomatize this model using two approaches: the second-order act approach à la Klibanoff et...
Persistent link: https://www.econbiz.de/10010779495
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Ellsberg Revisited: an Experimental Study
Halevy, Yoram - Vancouver School of Economics - 2005
An extension to Ellsberg's experiment demonstrates that attitudes to ambiguity and compound objective lotteries are …
Persistent link: https://www.econbiz.de/10004970939
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Information Acquisition and Decisions under Risk and Ambiguity
Bergheim, Ralf - Rheinisch-Westfälisches Institut für … - 2014
This paper experimentally investigates individual information acquisition and decisions in ambiguous situations in which the degree of ambiguity can endogenously and individually be decreased by the subjects. In particular, I analyze how risk aversion, ambiguity attitude and personality traits...
Persistent link: https://www.econbiz.de/10010778651
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Selection into auctions for risky and ambiguous prospects
Kocher, Martin G.; Trautmann, Stefan T. - School of Economics, University of East Anglia - 2010
bidders. A control experiment with selection in a simple choice task shows that subjects correctly anticipate the effects of …
Persistent link: https://www.econbiz.de/10010571488
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Compensating Differentials in Experimental Labor Markets
Carpenter, Jeffrey P.; Matthews, Peter Hans; Robbett, Andrea - Institute for the Study of Labor (IZA) - 2015
The theory of compensating differentials has proven difficult to test with observational data: the consequences of …. Instead, we construct experimental, real-effort labor markets and offer an evaluation of the theory in a controlled setting … differentials are affected by worker mobility and therefore selection. Consistent with the theory, we find that riskier firms must …
Persistent link: https://www.econbiz.de/10011163479
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Intuition and Reasoning in Choosing Ambiguous and Risky Lotteries
Bergheim, Ralf; Roos, Michael W.M. - Rheinisch-Westfälisches Institut für … - 2013
processes we do not find that those subjects showing ambiguity aversion in an urn experiment based on Halevy (2007 …
Persistent link: https://www.econbiz.de/10010696524
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A Bayesian Approach to Uncertainty Aversion
Halevy, Yoram; Feltkamp, Vincent - Vancouver School of Economics - 2004
The Ellsberg Paradox demonstrates that people's belief over uncertain events might not be representable by subjective probability. We show that if a risk averse decision maker, who has a well defined Bayesian prior, perceives an Ellsberg type decision problem as possibly composed of a bundle of...
Persistent link: https://www.econbiz.de/10004977025
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Is There a Development Gap in Rationality?
Cappelen, Alexander W.; Kariv, Shachar; Sørensen, Erik Ø. - Institutt for samfunnsøkonomi, Norges Handelshøyskole … - 2014
We report an experimental test of the four touchstones of rationality in choice under risk – utility maximization, stochastic dominance, expected-utility maximization and small-stakes risk neutrality – with students from one of the best universities in the United States and one of the best...
Persistent link: https://www.econbiz.de/10010818866