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, with either a negative externality on a third participant, uncertainty about gains from cooperation, or both. Uncertainty … foster cooperation. If we combine both qualifications and do not control for beliefs, we only find an uncertainty effect. If …
Persistent link: https://www.econbiz.de/10009021689
Persistent link: https://www.econbiz.de/10012128345
The market for copyrights is characterised by a highly skewed distribution of profits: very few movies, books and songs generate huge profits, whereas the great bulk barely manages to recover production cost. At the moment when the owner of intellectual property grants a licence ('ex ante'),...
Persistent link: https://www.econbiz.de/10010270447
We conduct two experiments where subjects make a sequence of binary choices between risky and ambiguous binary lotteries. Risky lotteries are defined as lotteries where the relative frequencies of outcomes are known. Ambiguous lotteries are lotteries where the relative frequencies of outcomes...
Persistent link: https://www.econbiz.de/10010895663
When the discount rate is uncertain, individuals whose preferences are consistent with discounted expected utility, exhibit diminishing impatience. This paper introduces and characterizes a variation of discounted expected utility in which the discount rate depends on the state of the nature...
Persistent link: https://www.econbiz.de/10011144066
overlooked: the swiftness of formal sanctions. We consider two dimensions: the timing at which the uncertainty about whether one …
Persistent link: https://www.econbiz.de/10012440473
In this paper, we document a “play-out” effect in preference reversal experiments. We compare data where preferences are elicited using (1) purely hypothetical gambles, (2) played-out, but unpaid gambles and (3) played-out gambles with truth-revealing monetary payments. We ask whether a...
Persistent link: https://www.econbiz.de/10011048101
Financial, managerial, and medical decisions often involve alternatives whose possible outcomes have uncertain probabilities. In contrast to alternatives whose probabilities are known, these uncertain alternatives offer the benefits of learning. In repeat-choice situations, such learning brings...
Persistent link: https://www.econbiz.de/10011049682
We describe an ambiguity hedging problem in Ellsberg experiments, where combinations of individually ambiguous bets eliminate aggregate ambiguity, and which may yield incorrect classifications of ambiguity averse subjects. We propose a new classification consistent with this hedging possibility.
Persistent link: https://www.econbiz.de/10011041603
comparing group and individual planning under risk and uncertainty. Our study is focussed on investigating how groups perform in … choosing under risk and uncertainty. Results suggest that groups perform better than individuals when planning under risk …, while the opposite happens in the case of planning under uncertainty. Interestingly, when comparing the behaviour of our …
Persistent link: https://www.econbiz.de/10010593812