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When Risk Perception Gets in the Way : Probability Weighting and Underprevention

Baillon, Aurélien - 2018

Personal decisions about health hazards are the main cause of impaired health and premature death. People smoke and eat too much and exercise too little. The lack of preventive efforts is surprising given their proven effectiveness. Arrow's (1963) classical paper suggested that moral hazard...

Persistent link: https://www.econbiz.de/10012916408

Income Risk, Precautionary Saving, and Loss Aversion – An Empirical Test

Ibanez, Marcela; Schneider, Sebastian O. - 2021

uncertainty about future income triggers saving because of loss aversion. We extend their theoretical analysis to also consider …

Persistent link: https://www.econbiz.de/10013243502

What Folklore Tells Us About Risk and Risk Taking : Cross-Cultural Comparisons of American, German, and Chinese Proverbs

Weber, Elke U.; Hsee, Christopher K. - 2011

Two studies attempted to discriminate between a situationaleconomic and a cultural explanation for the recently reported finding that Chinese from the People's Republic of China (PRC) are more risk-seeking than Americans. Both studies compared American and Chinese proverbs related to risk and...

Persistent link: https://www.econbiz.de/10014026774

Models and Mosaics : Investigating Cross-Cultural Differences in Risk Perception and Risk Preference

Weber, Elke U.; Hsee, Christopher K. - 2011

In this article, we describe a multistudy project designed to explain observed cross-national differences in risk taking between respondents from the People's Republic of China and the United States. Using this example, we develop the following recommendations forcross-cultural investigations....

Persistent link: https://www.econbiz.de/10014026777

Money, Kisses, and Electric Shocks : On the Affective Psychology of Risk

Rottenstreich, Yuval; Hsee, Christopher K. - 2008

Prospect theory's S-shaped weighting function is often said to reflect the psychophysics of chance. We propose an affective rather than psychophysical deconstruction of the weighting function resting on two assumptions. First, preferences depend on the affective reactions associated with...

Persistent link: https://www.econbiz.de/10014026779

Risk as Feelings

Loewenstein, George; Weber, Elke U.; Hsee, Christopher K. - 2011

Virtually all current theories of choice under risk or uncertainty are cognitive and consequentialist. They assume that …

Persistent link: https://www.econbiz.de/10014026780

Loss Modification Incentives for Insurers under Expected Utility and Loss Aversion

Soetevent, Adriaan R. - 2014

Given the possibility to modify the probability of a loss, will a profit-maximizing insurer engage in loss prevention or is it in his interest to increase the loss probability? This paper investigates this question. First, we calculate the expected profit maximizing loss probability within an...

Persistent link: https://www.econbiz.de/10013048791

The Theory of Insurance and Gambling : Replacing Risk Preferences with Quid pro Quo

Nyman, John A. - 2021

, preferences regarding uncertainty do not motivate demand, but uncertainty allows for the augmentation of the payout compared to …

Persistent link: https://www.econbiz.de/10013231666

On the Effect of Uncertainty on Personal Vaccination Decisions

Courbage, Christophe; Peter, Richard - 2021

decision in the absence of ambiguity. We then show that uncertainty about the probability of side effects and the efficacy of … the vaccine always reduce take-up under ambiguity aversion. However, uncertainty about the underlying disease, being the … results are relevant for policy because reducing uncertainty associated with the vaccine always has the de-sired effect …

Persistent link: https://www.econbiz.de/10013231813

Risky curves : from unobservable utility to observable opportunity sets

Friedman, Daniel; Sunder, Shyam - 2011

. Petersburg Paradox ; decisions under uncertainty ; option theory …

Persistent link: https://www.econbiz.de/10009151813