Similar Search Results

Eichberger, Jürgen; Grant, Simon; Lefort, Jean-Philippe - 2009 - This version: October 19, 2009

This paper shows that, for CEU preferences, the axioms consquentialism, state independence and conditional certainty equivalent consistency under updating characterise a family of capacities, called Genralised Neo-Additive Capacities (GNAC). This family contains as special cases among others...

Persistent link: https://www.econbiz.de/10003893438

Rank dependent utility, tax evasion and labor supply

Eide, Erling; Simson, Kristine von; Strøm, Steinar - 2010

payers act according to some non-expected utility theory, and (2) Individual ethical norms and social stigma induce people … subjective probabilities of being penalised according to the rank dependent utility theory, and (2) Tax payers' beliefs about … utility theory. The model explains data 53% better than pure random choices and predicts hours worked in the regular economy …

Persistent link: https://www.econbiz.de/10008697806

Intertemporal equilibria with knightian uncertainty

Dana, Rose-Anne; Riedel, Frank - 2010

; General Equilibrium Theory ; No Trade …

Persistent link: https://www.econbiz.de/10008736535

Affective decision making : a theory of optimism bias

Bracha, Anat; Brown, Donald J. - 2010

risk, such as expected utility theory and prospect theory. Hence, to explain the evidence suggesting that agents are …

Persistent link: https://www.econbiz.de/10008778674

Ambiguity and social interaction

Eichberger, Jürgen; Kelsey, David; Schipper, Burkhard - 2007

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/10003592769

Anomalies in intertemporal choice?

Gerber, Anke (contributor); Rohde, Kirsten I. M. (contributor) - 2007

This paper argues that observations of non-stationary choice behavior need not necessarily imply specific properties of the individual's discount function. As we show, the observed quot;anomaliesquot; in intertemporal choice can alternatively be explained by an individual's perception of the...

Persistent link: https://www.econbiz.de/10003550665

Merging of opinions under uncertainty

Bier, Monika; Engelage, Daniel - 2010

We consider long-run behavior of agents assessing risk in terms of dynamic convex risk measures or, equivalently, utility in terms of dynamic variational preferences in an uncertain setting. By virtue of a robust representation, we show that all uncertainty is revealed in the limit and agents...

Persistent link: https://www.econbiz.de/10003980912

Hedging price risk when payment dates are uncertain

Korn, Olaf - 2009 - Current Version: February 2009

This paper studies the hedging of price risk when payment dates are uncertain, a problem that frequently occurs in practice. It derives and establishes the variance minimizing dynamic hedging strategy, using forward contracts with different times to maturity. The resulting strategy fully hedges...

Persistent link: https://www.econbiz.de/10009526497

Quality ambiguity and the market mechanism for credence goods

Benner, Dietrich (contributor) - 2004

post -. Trust has to replace own examination and verification. Applying Choquet-Expected Utility theory, a general model of …

Persistent link: https://www.econbiz.de/10011342061

Revealed preferences over risk and uncertainty

Polisson, Matthew; Quah, John K.-H.; Renou, Ludovic - 2015

Consider a finite data set where each observation consists of a bundle of contingent consumption chosen by an agent from a constraint set of such bundles. We develop a general procedure for testing the consistency of this data set with a broad class of models of choice under risk and under...

Persistent link: https://www.econbiz.de/10011345795