Conclusions favorable to flexible exchange rates typically accord with expected utility theory in ignoring the costs … Ahead Theory, Pope (1983, 1995, 2005), Pope, Leitner and Leopold (2006). A laboratory experiment suggests that (i) and (ii …

The relationship between risk in the environment, risk aversion and inequality aversion is not well understood … with varying degrees of risk (“endowment risk”) influence individual behavior. We derive theoretical predictions for these … games using utility functions that capture additively separable constant relative risk aversion and inequity aversion. We …

We conduct laboratory experiments to investigate basic predictions of principal-agent theory about the choice of piece … rate contracts in the presence of output risk, and provide novel insights that reference dependent preferences affect the … tradeoff between risk and incentives. Subjects in our experiments choose their compensation for performing a real-effort task …

. We present a laboratory experiment that studies how residual risk of failure affects willingness to contribute to climate … risk than in treatments without one. We interpret this as an outcome of a psychological process where residual risk puts …

We conduct laboratory experiments to investigate basic predictions of principal-agent theory about the choice of piece … rate contracts in the presence of output risk, and provide novel insights that reference dependent preferences affect the … tradeoff between risk and incentives. Subjects in our experiments choose their compensation for performing a real-effort task …