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On the Effect of Uncertainty on Personal Vaccination Decisions

Courbage, Christophe; Peter, Richard - 2021

decision in the absence of ambiguity. We then show that uncertainty about the probability of side effects and the efficacy of … the vaccine always reduce take-up under ambiguity aversion. However, uncertainty about the underlying disease, being the … results are relevant for policy because reducing uncertainty associated with the vaccine always has the de-sired effect …

Persistent link: https://www.econbiz.de/10013231813

Optimal consumption with intertemporal substitution under knightian uncertainty

Ferrari, Giorgio; Li, Hanwu; Riedel, Frank - 2020

We study an intertemporal consumption and portfolio choice problem under Knightian uncertainty in which agent …

Persistent link: https://www.econbiz.de/10012315509

Default option, risk-aversion and household borrowing behaviour

Größl, Ingrid; Fritsche, Ulrich - 2007

Assuming a risk-neutral bank and assuming household utility to be exponential, we show how under information symmetry the covariance of income and loan repayments may explain higher household borrowings than in the case without default option. Under ex post information asymmetry and positive...

Persistent link: https://www.econbiz.de/10010426364

Constant relative risk aversion and form equivalence classes

Battermann, Harald L.; Broll, Udo; Wahl, Jack E. - 1997

We derive a class of utility functions that are equivalent with respect to a well-defined functional form. We apply a general view of constant relative risk aversion to investigate on different equivalence relations. Then we compare our results with standard applications in economics and finance.

Persistent link: https://www.econbiz.de/10009675762

Concavity, Stochastic Utility, and Risk Aversion

Jarrow, Robert - 2020

This paper studies the relation between concavity, stochastic or state dependent utility functions, and risk aversion. Using the common definition of risk aversion, but modified for state dependent preferences, we show that concavity does not imply risk aversion. Instead, it implies a weaker...

Persistent link: https://www.econbiz.de/10012844461

Human Survival, Risk, and Law : Considering Risk Filters to Replace Cost-Benefit Analysis

Draper, John William - 2017

Selfish utilitarianism, neo-classical economics, the directive of short-term income maximization, and the decision tool of cost-benefit analysis fail to protect our species from the significant risks of too much consumption, pollution, or population. For a longer-term survival, humanity needs to...

Persistent link: https://www.econbiz.de/10012969820

Risky Curves : From Unobservable Utility to Observable Opportunity Sets

Friedman, Daniel - 2017

Most theories of risky choice postulate that a decision maker maximizes the expectation of a Bernoulli (or utility or similar) function. We tour 60 years of empirical search and conclude that no such functions have yet been found that are useful for out-of-sample prediction. Nor do we find...

Persistent link: https://www.econbiz.de/10012975977