Consumers face complex choices when they buy wine: wine is a highly differentiated product sold at prices that vary over a wide range. This paper aims to provide monetary valuation of some relevant credence attributes of the wine, such as certifications and quality ratings made by expert...

When natural disasters strike in developing countries, households are often forced to choose between preserving assets or consumption: either can result in permanent consequences. In this paper we ask: can insurance transfer risk in a way that reduces the need for households to rely on costly...

Retailers design pricing strategies that can be characterized as a choice of store price format between offering everyday low prices (EDLP) and high / low prices (HILO). EDLP stores set prices which are constant over time, while HILO stores set prices which are higher than EDLP stores on...

We consider a political economy where government cares about risk-averse farmers’ loss of income and yet incurs political cost if it provides monetary support to farmers. Government evaluates three options: 1) ex-post disaster aid; 2) ex-ante insurance option with perfect information; 3)...

This study investigates the impact of risk preferences on economic efficiency scores. Risk averse individuals may be less likely to adopt new technologies and have lower production levels than individuals with other risk preferences. Nonparametric techniques are used to estimate cost and revenue...