Showing 1 - 10 of 18,460
We propose to analyse the hyperbolic discounting preferences effect on the innovator's research investment decision … strengthens this ignorance strategy. Finally, we investigate the impact of existing liability rules on the innovator's decision to …
Persistent link: https://www.econbiz.de/10014216521
Facing climate change, seasonal forecasts, and weather warnings are increasingly important to warn the public of the risk of extreme climate conditions. However, being confronted with inaccurate forecast systems may undermine individuals' responsiveness in the long run. Using an online...
Persistent link: https://www.econbiz.de/10015053857
Economic uncertainty has to do with the consequences of actions under different circumstances. This raises two questions: First, how sensitive are the outcomes of actions to variations in the environment? Second, how clearly can we distinguish between environments? Robustness comes at the price...
Persistent link: https://www.econbiz.de/10011326624
Uncertainty in economics is generated by “nature” but also by the model we use to “produce the future”. The production of the future comprises besides the allocation of resources on different instruments (technologies, financial products) also the design of the instruments....
Persistent link: https://www.econbiz.de/10011550229
maxmin decision-maker equipped with such belief dynamics prefers, under prevalent conditions, a bet in an ambiguous urn over …
Persistent link: https://www.econbiz.de/10010424809
Agents involved in the formation of a social or economic network typically face uncertainty about the benefits of creating a link. However, the interplay of such uncertainty and risk attitudes has been neglected in the network formation literature. We propose a dynamic network formation model...
Persistent link: https://www.econbiz.de/10011386449
This paper develops a micro-founded general equilibrium model of the financial system composed of ultimate borrowers, ultimate lenders and financial intermediaries. The model is used to investigate the impact of uncertainty about the likelihood of governmental bailouts on leverage, interest...
Persistent link: https://www.econbiz.de/10013122330
Among non-specialists, the estimates of the HIV/AIDS transmission rate are generally upwardly biased. This overestimation may be perceived as a godsend, as it increases the incentives to have protected sexual relationships. However, a pernicious effect may counterbalance this positive effect....
Persistent link: https://www.econbiz.de/10013104279
State-space models have been increasingly used to study macroeconomic and financial problems. A state-space representation consists of two equations, a measurement equation which links the observed variables to unobserved state variables and a transition equation describing the dynamics of the...
Persistent link: https://www.econbiz.de/10013091140
We everyday engage in the 'Small Decision Making (SDM).' This paper presents an experiment on SDM that consists of the … two treatments: (1) the search treatment in the context of SDM under uncertainty, where the decision makers are not … disclosed the payoff structure; (2) the choice treatment in the context of SDM under risk, where the decision makers are …
Persistent link: https://www.econbiz.de/10013156244