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outcomes experienced during the game. Risk aversion decreases after earlier expectations have been shattered by unfavorable …
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explain the paradox. We find that even in situations where subjects are risk-seeking, and zeroing-out small probabilities … supports risk-taking, the St. Petersburg paradox exists. This indicates that the paradox cannot be resolved by the arguments …
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In this paper we study the effects that loss contracts - prepayments that can be clawbacked later - have on group coordination when there is strategic uncertainty. We compare the choices made by experimental subjects in a minimum effort game. In control sessions, incentives are formulated as a...
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by a draw from an Ellsberg urn. In a within-subject experiment, subjects make decisions in three different bargaining …
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