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Emotions were central to the development of economics, especially in utility theory in classical economics. While … neoclassical utility theory basically abolished emotions, behavioural economics more recently reintroduced emotions in utility … theory. Beyond utility theory, economic theorists use emotions to explain behaviour which otherwise could not be understood …
Persistent link: https://www.econbiz.de/10011499845
Recent health policy reforms try to increase consumer choice. We use a laboratory experiment to analyze consumers’ tastes in typical contract attributes of health insurances and to investigate their relationship with individual risk preferences. First, subjects make consecutive insurance...
Persistent link: https://www.econbiz.de/10010461931
This paper tests how subjects behave in an intertemporal consumption/saving experiment when borrowing is allowed and whether subjects treat debt differently than savings. Two treatments create environments where either saving or borrowing is required for optimal consumption. Since both...
Persistent link: https://www.econbiz.de/10010190271
We investigate heterogeneity in patterns of preferences for health insurance features using health insurance choice data from a controlled laboratory experiment. Within the experiment, participants make consecutive insurance choices based on choice sets that vary in composition and size. We keep...
Persistent link: https://www.econbiz.de/10014305687
This paper analyzes the effect of information overload on preference or aversion for variety. According to the model, a rational decision maker who suffers from information overload, faces a two-stage decision process, and is choosing from a set of unknown goods will find it optimal at some...
Persistent link: https://www.econbiz.de/10008991845
We investigate whether depleting people's cognitive resources (or "willpower") affects the degree to which they are susceptible to framing effects. Recent research in social psychology and economics has suggested that willpower is a resource that can be temporarily depleted and that a depleted...
Persistent link: https://www.econbiz.de/10009793156
A continuing goal of experiments is to understand risky decisions when the decisions are important. Often a decision's importance relates to the magnitude of the associated monetary stake. Khaneman and Tversky (1979) argue that risky decisions in high stakes environments can be informed using...
Persistent link: https://www.econbiz.de/10013159348
This paper attempts to identify behavioral patterns and compare their average success considering several criteria of bounded rationality. Experimentally observed choice behavior in various decision tasks is used to assess heterogeneity in how individual participants respond to 15 randomly...
Persistent link: https://www.econbiz.de/10012945510
The standard assumption in economics is that people have well-defined preferences and are able to specify their preferred choice. This is usually adopted by experimenters, when eliciting preferences, by asking subjects to choose between two options: "I choose option A" or "I choose option B"....
Persistent link: https://www.econbiz.de/10012869670
Recent health policy reforms try to increase consumer choice. We use a laboratory experiment to analyze consumers' tastes in typical contract attributes of health insurances and to investigate their relationship with individual risk preferences. First, subjects make consecutive insurance choices...
Persistent link: https://www.econbiz.de/10013026166