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Ambiguous prospects are ubiquitous in social and economic life, but the psychological foundations of behavior under ambiguity are still not well understood. One of the most robust empirical regularities is the strong correlation between attitudes towards ambiguity and compound risk which...
Persistent link: https://www.econbiz.de/10014551421
Ambiguous prospects are ubiquitous in social and economic life, but the psychological foundations of behavior under ambiguity are still not well understood. One of the most robust empirical regularities is the strong correlation between attitudes towards ambiguity and compound risk which...
Persistent link: https://www.econbiz.de/10014544917
We investigate whether individual and group risk preferences are dependent on reward delay. To do so, we run a lottery-choice experiment, where payments are made either directly or in 3, 9, or 18 months after the experiment. We find that risk preference is time-dependent for both individuals and...
Persistent link: https://www.econbiz.de/10012983227
We present results from a laboratory study of loss aversion in the context of intertemporal choice. We investigate whether the provision of (windfall) endowments results in different elicited discount rates relative to subjects who earn income or earn and retain the income for a period before...
Persistent link: https://www.econbiz.de/10013145193
This paper tests how subjects behave in an intertemporal consumption/saving experiment when borrowing is allowed and whether subjects treat debt differently than savings. Two treatments create environments where either saving or borrowing is required for optimal consumption. Since both...
Persistent link: https://www.econbiz.de/10010487750
We present results from a laboratory study of loss aversion in the context of intertemporal choice. We investigate whether the provision of (windfall) endowments results in different elicited discount rates relative to subjects who earn income or earn and retain the income for a period before...
Persistent link: https://www.econbiz.de/10003947965
Managers often make decisions in situations involving risk and uncertainty. To ensure the prosperity of the company, neutral behavior is desirable in such situations. However, when evaluating future-oriented managerial actions, cognitive biases can arise that are manifested as aversions towards...
Persistent link: https://www.econbiz.de/10015166249
Experiments typically rely on small payments to incentivize participants. This works if participants view these payments as fungible with their own money, but if participants view the payments as a windfall, they may behave differently in experiments than in real life. We modify standard risky...
Persistent link: https://www.econbiz.de/10012865102
Laboratory experiments involving a real effort task are conducted to examine the importance of gender differences in competition aversion for generating gender wage gaps. Cross-subject design treatment and control experiments suggest that gender differences in risk aversion play no significant...
Persistent link: https://www.econbiz.de/10012820835
Experiments on intertemporal consumption typically show that people have difficulties in optimally solving such problems. Previous studies have focused on contexts in which agents are faced with risky future incomes and have to plan over long horizons. We present an experiment comparing decision...
Persistent link: https://www.econbiz.de/10013033292