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A Model of Intertemporal Choice with Rank-Dependent Discounted Utility

Blavatskyy, Pavlo R. - 2014

, as time passes, they prefer to renegotiate such a contract for an advance payment. Behavioral characterization …

Persistent link: https://www.econbiz.de/10013054440

Where You Stand Affects the Risks You Take : Socially Reference-Dependent Risk Attitudes

Lien, Jaimie W. - 2015

How does an individual's position within a social distribution influence their desire to take risk? Reference-dependent loss aversion (Kahneman and Tversky, 1979; Koszegi and Rabin, 2006, 2007) adapted to a social setting, suggests that individuals may find risk more appealing when they are doing...

Persistent link: https://www.econbiz.de/10013018811

Cash Holdings and Financing Decisions Under Ambiguity

Agliardi, Elettra - 2014

This paper addresses the following unresolved questions: Why do some firms issue equity instead of debt? Why did most firms retain their cash holdings instead of distributing them as dividends in recent times? How do firms change their financing policies during a period of severe financial...

Persistent link: https://www.econbiz.de/10013043789

Sharing Ambiguous Risks

Chakravarty, Surajeet - 2014

We analyse risk-sharing when individuals perceive ambiguity about future events. The main departure from previous work is that different individuals perceive ambiguity differently. We show that individuals fail to share risks for extreme events. This may provide an explanation why we do not...

Persistent link: https://www.econbiz.de/10013043818

A Theory of Decision-Making Under Risk as a Tradeoff between Expected Utility, Expected Utility Deviation and Expected Utility Skewness

Blavatskyy, Pavlo R. - 2014

This paper presents a new decision theory for modelling choice under risk. The new theory is a two …-parameter generalization of expected utility theory. The proposed theory assumes that a decision maker: 1) behaves as if maximizing expected … lotteries). The proposed theory can rationalize the fourfold pattern of risk attitudes; the common ratio effect and the reverse …

Persistent link: https://www.econbiz.de/10013046184

Risk Exchange Under EUUP

Iwaki, Hideki - 2018

represented by the expected utility with uncertainty (EUUP) theory advocated by Izhakian (2017). The economic premium principle of …

Persistent link: https://www.econbiz.de/10012930203

Risky Health Choices and the Balloon Economic Risk Protocol

Fairley, Kim - 2018

We describe a risk protocol that combines the rigor of economic studies of risk with the ecological validity of tasks from psychology. Despite a wealth of experimental contributions on risk preferences, stemming from a variety of elicitation tasks, the external validity of standard measures of...

Persistent link: https://www.econbiz.de/10012932436

Decreasing Risk by Adding Inside Noise : A Theory of Transfers of Risk

Brown, David P. - 2018

I present a theory of financial contracts that transfer risk from one party to another. Risk reduction is equivalent to …

Persistent link: https://www.econbiz.de/10012933472

Myopia and Intertemporal Choice

Jin, Miao; Li, Jian; Meng, Juanjuan; Sun, Jinwei - 2021

This paper investigates whether imperfect foresight affects intertemporal choice using three experiments. We study the effects of both exogenously introduced and naturally occurring (i.e., summer vacation) forecasting difficulties, as well as the effects of increasing internal forecasting...

Persistent link: https://www.econbiz.de/10013219343

Translating Economic Essence of the Independence Axiom into a General Equilibrium Mathematical Condition

Obrimah, Oghenovo A. - 2021

' is necessary condition for robustness of applications of expected utility theory to modeling of recurring choice. This …

Persistent link: https://www.econbiz.de/10013220897