We introduce the concept of a TUU-game, a transferable utility game with uncertainty. In a TUU-game there is uncertainty regarding the payoffs of coalitions. One out of a finite number of states of nature materializes and conditional on the state, the players are involved in a particular...

The aim of this paper is to understand what a recession means for individual consumers, and to model in a life-cycle framework how individuals respond to recessions. Our focus is on the sharp increase in savings rates that have been observed in the current and recent recessions. We show...

Individual terrorist are frequently behaving seemingly absurd, e.g. by carrying out suicide operations, while activities of the terrorist organisations as a whole often seem to be conducted in a very effective way. These facts caused many researchers to regard the leaders representing the...

This paper provides a theoretical analysis regarding the rationality of suicide attacks from an economist’s point of view. It is argued that although a terrorist gives up future utility from consumption by committing a suicide attack, this loss can be overcompensated by the utility he derives...

We demonstrate the advantages of a climate treaty based solely on rules for international permit markets when there is uncertainty about abatement costs and environmental damages. Such a ‘Rules Treaty’ comprises a scaling factor and a refunding rule. Each signatory can freely choose the...

We develop a general equilibrium model of wealth transfers in the presence of uncertain lifetimes and default. Without introducing exogenous debt constraints, agents are allowed to make collateral-backed promises at any state of their life span.

Seit der globalen Wirtschafts- und Finanzkrise wurden zur Messung von Unsicherheit viele Proxy-Maße entwickelt. Entscheidend für die Auswirkung von Unsicherheit auf wirtschaftliche Entscheidungen und die Konjunktur ist jedoch in den meisten Fällen die tatsächlich wahrgenommene Unsicherheit...

Das Für und Wider von verbindlichen Empfehlungen für weiterführende Schulen nach der Grundschule wird in Wirtschaft und Politik kontrovers diskutiert. Die gesetzlichen Vorgaben zum Übergang von der Grundschule in die weiterführenden Schulen unterscheiden sich zwischen den Bundesländern zum...

In this paper, we study choice under uncertainty with belief functions on a set of outcomes as objects of choice. Belief functions describe what is objectively known about the probabilities of outcomes. We assume that decision makers have preferences over belief functions that reflect both their...