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Revealed Preference and Choice under Uncertainty

BOSSERT, Walter; SUZUMURA, Kotaro - Département de Sciences Économiques, Université de … - 2010

generated by the optimization of some underlying decision criterion under uncertainty. Rather than focusing on a specific theory …

Persistent link: https://www.econbiz.de/10010933662

Keynes's investment theory as a micro-foundation for his grandchildren

Nisticò, Sergio - 2020

In contrast with the "missing micro-foundations" argument against Keynes's macroeconomics, the paper argues that it is the present state of microeconomics that needs more solid "Keynesian foundations". It is in particular Keynes's understanding of investors' behaviour that can be fruitfully...

Persistent link: https://www.econbiz.de/10012173825

Attitudes Towards Income Risk in the Presence of Quantity Constraints

Schroyen, Fred - 2011

Considering a consumer with standard preferences, I trace out the consequences for risk aversion and prudence of quantity constraints on markets. I first show how the effect can be decomposed into a price risk effect and an endogenously changing risk aversion/prudence effect. Next, I calibrate...

Persistent link: https://www.econbiz.de/10014183497

Income Risk Aversion with Quantity Constraints

Schroyen, Fred - 2010

In this paper, I consider a consumer with a concave utility function over n commodities and trace out the consequences of quantity constraints on product markets for the consumer's aversion towards income risk. I show that the effect can be decomposed in a cardinal and ordinal term, that both...

Persistent link: https://www.econbiz.de/10014197353

Ex Post Uncertainty and the Consumer Problem

Antoniadou, Elena - 2020

Wealth uncertainty may be resolved before consumption in which case consumption is optimal. But if uncertainty remains … expected utility with preferences over two goods, one of which is subject to additive ex post uncertainty. State preferences … comparative utility loss along the distribution of uncertainty and lattice theoretic properties allow us to determine how these …

Persistent link: https://www.econbiz.de/10014093348

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

Income risk, precautionary saving, and loss aversion : an empirical test

Ibanez, Marcela; Schneider, Sebastian O. - 2023

This paper empirically examines the behavioral precautionary saving hypothesis that uncertainty about future income …

Persistent link: https://www.econbiz.de/10014312199

Optimal saving in the presence of two small risks

Menegatti, M. - Facoltà di Economia, Università degli Studi di Parma - 2008

We examine optimal saving in the presence of two small risks: income risk and a background risk. First, we compute the necessary and sufficient condition for a positive precautionary saving, showing that it depends on two terms capturing respectively the direct effect of income risk and the...

Persistent link: https://www.econbiz.de/10005612404