We use a two-person linear voluntary contribution mechanism with stochastic marginal benefits from the public good to examine the effect of imperfect information on contributions levels. To assess prior risk attitudes, individual valuations of several risky prospects are elicited via a...

This paper aims to experimentally investigate how individual willingness to pay for a lottery is affected by using a new way of representing of probabilistic ambiguity. Thus we can see how individual valuation reacts to different degrees of ambiguity probability information provided to subjects....

Experimental research on decision making under risk has until now always employed choicedata in order to evaluate the empirical performance of expected utility and the alternative nonexpectedutility theories. The present paper performs a similar analysis which relies on pricingdata instead of...

This paper purports to provide experimental evidence explaining a number of stylized facts associated with thebehaviour of financial returns, in particular, the fat tailed nature of their distribution and the persistence in theirvolatility. By means of a laboratory experiment, we will...

In the 40’s and early 50’ two decision theories were proposed and have since dominated the sceneof the fascinating field of decision-making. In 1944 – when von Neumann and Morgenstern showedthat if preferences are consistent with a set of axioms then it is possible to represent these...

Seminal models of herd behaviour and informational cascades point out the existence of information negativeexternalities, and propose to destroy information in order to achieve social improvements. Although in the lastyears many features of herd behaviour and informational cascades have been...

This study explores how people learn and adapt their risk preferences using different elicitation methods, challenging the neoclassical theory that suggests preferences are fixed. Instead, we show that preferences can change. However, we aim to explain whether the observed changes are due to a...

In this work, we conducted a laboratory experiment in order to test the findings of a theoretical environmental enforcement model played as a strategic game where the firm’s behavior is influenced by the course of actions discretionally undertaken by both the U.S. Environmental Protection...

In this paper we aim to look into the attributes of Ghanaians’ willingness-to-pay for green products. This would help us to assess whether Ghanaians show a preference towards environmental goods. The methodology employed to address these issues is an ‘experimentally-adapted’ CV survey...

There is abundant literature in experimental research on decision making under risk, which compares, and ranks subjects’ preferences on the basis of some elicitation method. The present paper performs a similar analysis in order to compare them. Since pricing data lead in many cases to some...