Does adverse selection hamper the effectiveness of voluntary risk sharing? How do differences in risk profiles affect … vary how risk profiles differ between individuals. We find strong evidence for adverse selection if individuals risk … profiles can be ranked according to first-order stochastic dominance and only little evidence for adverse selection if risk …

This paper provides a simple explanation for systematic violations of expected utility theory in Allais-type tasks. We … demonstrate that the main reason our participants violate expected utility theory is aversion to receiving a zero outcome, and not … alternatives to expected utility theory. None has incremental explanatory power beyond the zero effect …

using a dynamic choice model that allows decision makers to both discount the future (be myopic) and be subject to random …

Popular models for decision making under ambiguity assume that people use not one but multiple priors. This paper is a …

Prospect Theory (CPT). We also find risk aversion to be related to ambiguity aversion, compound lottery aversion and …, small stakes risk aversion, present bias, loss aversion, the endowment effect, aversion to ambiguity and compound lotteries … probability weighting (as measured by the common ratio and common consequence effects) and risk aversion, in line with Cumulative …

that is roughly consistent with the benchmark theory …

elicit individual risk preferences according to Cumulative Prospect Theory. Applying a latent class model to the choice data …' tastes in typical contract attributes of health insurances and to investigate their relationship with individual risk … helps consumers to choose contracts, which are in line with their individual risk preferences. Our results reveal valuable …

The question of how to measure and classify people's risk preferences is of substantial importance in the field of …