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We compare behavior in modified dictator games with and without role uncertainty. Subjects choose between a selfish …). While costly surplus creating actions are most frequent under role uncertainty (64%), selfish actions become most frequent … without role uncertainty (69%). Also, the frequency of surplus destroying choices is negligible with role uncertainty (1%) but …
Persistent link: https://www.econbiz.de/10013158398
dissolving. Modeling uncertainty by a compact environment around a reference distribution F in the Prohorov metric, we derive the … investigated. We identify Knightian Uncertainty about the peer's distribution as the reason for its deterrent effect of an immature … optimal price announcement for an ambiguity averse divider. The divider hedges against uncertainty for valuations close to the …
Persistent link: https://www.econbiz.de/10013174846
We present a theoretical framework to study risk and other-regarding preferences. The model can explain the main behavioral patterns in the combined domain and is the first to disentangle elementary attitudes on risk, altruism, social substitution, ex-ante inequality, and ex-post inequality. We...
Persistent link: https://www.econbiz.de/10014263591
This paper proposes a model of how biased individuals update beliefs in the presence of informational ambiguity. Individuals are ambiguous about the actual signal-generating process and interpret signals according to the model that can best support their biases. This paper provides a complete...
Persistent link: https://www.econbiz.de/10013234442
Random choice as the outcome of deliberate randomization has been extensively documented in the recent experimental economics literature.Motivated by this evidence, we consider a decision-maker (DM) who faces a set of risky actions and can delegate his choice to a randomization device. We assume...
Persistent link: https://www.econbiz.de/10013237123
uncertainty. Our findings imply that a unifying theory of social risk effects requires new explanations. …
Persistent link: https://www.econbiz.de/10012598407
We present a non-technical account of ambiguity in strategic games and show how it may be applied to economics and social sciences. Optimistic and pessimistic responses to ambiguity are formally modelled. We show that pessimism has the effect of increasing (decreasing) equilibrium prices under...
Persistent link: https://www.econbiz.de/10008620349
Rodrigues-Neto (2009) has shown that a given specification of posteriors of different players in an incomplete-information setting is compatible with a common prior if and only if the posteriors satisfy the so-called cycle equations. This note shows that, if, for any player, any element of the...
Persistent link: https://www.econbiz.de/10009021683
consumer mean. In the uniform case, as the aggregate uncertainty about the mean becomes large relative to the dispersion of …
Persistent link: https://www.econbiz.de/10009323810
actions for damages and by limiting the liability of the immunity recipient to its direct and indirect purchasers. Our … improve its effectiveness, through a legal regime in which the civil liability of the immunity recipient is minimized (as in …
Persistent link: https://www.econbiz.de/10011168913