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Bailout Uncertainty in a Microfounded General Equilibrium Model of the Financial System

Cukierman, Alex - 2011

between risk and uncertainty is implemented by applying the Gilboa-Schmeidler (1989) maxmin with multiple priors framework to …

Persistent link: https://www.econbiz.de/10013122330

Should Prevention Campaigns Disclose the Transmission Rate of HIV/AIDS? Theory and Application to Burundi

Sterck, Olivier - 2012

Among non-specialists, the estimates of the HIV/AIDS transmission rate are generally upwardly biased. This overestimation may be perceived as a godsend, as it increases the incentives to have protected sexual relationships. However, a pernicious effect may counterbalance this positive effect....

Persistent link: https://www.econbiz.de/10013104279

Model Uncertainty, State Uncertainty, and State-Space Models

Luo, Yulei - 2013

State-space models have been increasingly used to study macroeconomic and financial problems. A state-space representation consists of two equations, a measurement equation which links the observed variables to unobserved state variables and a transition equation describing the dynamics of the...

Persistent link: https://www.econbiz.de/10013091140

Small Decision Making Under Uncertainty and Risk

Fujikawa, Takemi - 2009

disclosed the payoff structure; (2) the choice treatment in the context of SDM under risk, where the decision makers are … distribution lead to robust deviations from maximisation. The results of the choice treatment show that the risk-averse decision …

Persistent link: https://www.econbiz.de/10013156244

The Treasury Bill Risk Premium : Why T-Bills Are About as Risky as Stocks in the Long Term

White, James - 2020

the notion that T-bills and other cash proxies, such as money market funds and bank deposits, are the lowest-risk assets …

Persistent link: https://www.econbiz.de/10012834170

Climate Risk Perceptions and Demand for Flood Insurance

Ratnadiwakara, Dimuthu - 2020

Using detailed micro-level data, we show that individuals' beliefs about climate change influence their choice and level of flood insurance coverage. Our empirical strategy exploits the heterogeneous impact of widening partisan polarization on climate change beliefs after the 2016 general...

Persistent link: https://www.econbiz.de/10012842393

The Problem of Prevention

Benoit, Jean-Pierre - 2008

Many disasters are foreshadowed by insufficient preventative care. In this paper, we argue that there is a true problem of prevention, in that insufficient care is often the result of rational calculations on the part of agents. We identify three factors that lead to dubious efforts in care....

Persistent link: https://www.econbiz.de/10012727052

Responsibility Sharing, Beliefs and Risk Taking

Bachmann, Kremena - 2019

that decision-makers tend to form beliefs that justify the previous investment decisions. A stronger risk taking motivates … more optimistic beliefs, in particular if it leads to losses. Sharing the responsibility for the risk taking reduces the … bias in the beliefs and this helps decision-makers to reduce the risk taking and limit the losses. The results suggest that …

Persistent link: https://www.econbiz.de/10012902707

Strategies under Strategic Uncertainty

Mass, Helene - 2019

I investigate the decision problem of a player in a game of incomplete information who faces uncertainty about the other players' strategies. I propose a new decision criterion which works in two steps. First, I assume common knowledge of rationality and eliminate all strategies which are not...

Persistent link: https://www.econbiz.de/10012895797

Rational Delay of Effort in Projects with Uncertain Requirements

Külpmann, Philipp - 2018

We analyze a dynamic moral hazard problem in teams with imperfect monitoring in continuous time. In the model, players are working together to achieve a breakthrough in a project while facing a deadline. The effort needed to achieve a breakthrough is unknown but players have a common prior about...

Persistent link: https://www.econbiz.de/10012937113