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nature. The existence of such state-dependent indivisible consumption opportunities influences a person's risk attitudes. In … general, people are not risk averse anymore even if utility from divisible consumption is concave. I propose a definition of … same reasons that rule out risk aversion turn out to be the basis of a desire to insure.This calls into question the …
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state of the world has realized? I show that simple long-term contracts perform better than insinuated in Herweg and Schmidt …
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We conduct a laboratory experiment to explore whether loss aversion applies to social image concerns. First, subjects are ranked publicly in a social image relevant domain, an IQ test, to establish own rank as a within-subject reference point. We then induce an exogenous change in within-subject...
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state of the world is realized? I show that simple long-term contracts perform better than insinuated in Herweg and Schmidt …
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We exploit administrative data on exact commuting distances for a large sample of German employees and study the relation of commuting and wages. We find that it requires 1.5 times as much money in terms of higher wages for job changers to accept an increase of their commute as compared to their...
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