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defined insurance and non-insurance markets based on the initial loss size, we develop theory to show that insurers with buyer … our theory and find support. Monopolistic insurer-subjects in non-insurance markets increase loss sizes to establish …
Persistent link: https://www.econbiz.de/10011456744
principles of Expected Utility Theory (EUT) and of Portfolio Selection Theory (PST). The experiment is performed with individuals … providing additional risk that is not compensated by additional expected value. We find that the results of our experiment are … extent observed team decisions under risk are actually consistent with the principles of rational choice, specifically the …
Persistent link: https://www.econbiz.de/10014182702
This study examines risk premia in a laboratory market featuring a long-lived asset. The research is enabled by …, statistically significant risk premia are reported, in support of standard asset pricing models. Potential determinants of the risk … premia are investigated. These risk premia are not sensitive to expected variance, but do vary positively with the magnitude …
Persistent link: https://www.econbiz.de/10013027527
We propose a new paradigm to study coordination in complex social systems, such as financial markets, that accounts for fundamental uncertainty. This new context has features from prediction markets that have been shown previously to mitigate price bubbles in classical asset market experiments....
Persistent link: https://www.econbiz.de/10011514493
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 … infinite horizon and suffer random income shocks. Risk-averse individuals have incentives to smooth consumption by making …
Persistent link: https://www.econbiz.de/10014073184
long horizons. We present an experiment comparing decision making under certainty, risk, and ambiguity, over a shorter … lifecycle. Results show that behavior in the ambiguity treatment is markedly different than in the risk condition and it is …
Persistent link: https://www.econbiz.de/10013033292
We investigate the decision of experimental subjects to incur the risk of revealing personal private information to … in the laboratory. We show that individual decisions to incur privacy risk are correlated with decisions to incur … monetary risk. We find that partially depriving subjects of control over the revelation of their personal information does not …
Persistent link: https://www.econbiz.de/10011563124
experiment that reproduces the main features of a tennis match. We show that our importance criterion is able to predict the …
Persistent link: https://www.econbiz.de/10011452765
whereas each of the other n-1 players receives only a fraction of this value. We report the results of an experiment in which …
Persistent link: https://www.econbiz.de/10014028806
We study experimentally how entry into a market with uncertain capacity is affected by the type of information potential entrants have available. Our focus is on behavior in a two-market entry game. In the risky information market there are two possible market capacities, both known to occur...
Persistent link: https://www.econbiz.de/10013137914