behavioural models suggested by psychology (i.e., weighted probabilities applied to regret and rejoice theory), and by updating …

This paper presents the first laboratory study of risk-sharing without commitment. Our experiment captures the main … for the shape of the constrained optimal risk-sharing arrangement. In our experiment, participants are matched in pairs …-horizon and discounting in the model. Second, at the end of the experiment, a unique period is randomly drawn to count for cash …