With essentially the same estimation methods and time period but using different UK data sets and risk measures, Sandy and Elliott (1996) found that nonunion male manual workers had a substantially higher fatal risk premium than union workers while Siebert and Wei (1994) found the opposite. This...

This paper estimates both single and multiple spell hazard models using a sample of workers' compensation claims (with soft tissue musculoskeletal injuries) from Ontario, Canada. Most of the results in this paper are consistent with the estimates in the existing literature. However, the duration...

Among the most popular models for decision under risk and uncertainty are the rank-dependent models, introduced by Quiggin and Schmeidler. Central concepts in these models are rank-dependence and comonotonicity. It has been suggested that these concepts are technical tools that have no intuitive...

Attitudes towards risk play a major role in many economic decisions. In empirical studies it is quite often assumed that attitudes towards risk do not vary across individuals. This paper questions this assumption and analyses which factors influence an individual's risk attitude. Based on...

An event-splitting effect (ESE) occurs when an event, which yields a positive outcome in one lottery but zero under another, is separated into two sub-events and this increases the relative attractiveness of the former lottery. ESEs are attributed to either (1) a preference for more positive...

For gambles--non-numerical consequences attached to uncertain chance events--analogues are proposed for the sum of independent random variables and their convolution. Joint receipt of gambles is the analogue of the sum of random variables. Because it has no unique expansion as a first-order...

Subadditive time discounting means that discounting over a delay is greater when the delay is divided into subintervals than when it is left undivided. This may produce the most important result usually attributed to hyperbolic discounting: declining impatience, or the inverse relationship...

We analyze the decision of individuals with time-inconsistent preferences to invest in projects yielding either current costs and future benefits or current benefits and future costs. We show that competition between agents for the same project mitigates the tendency to procrastinate on the...

Mainstream explanations to gambling specify conditions under which human agents are locally risk loving. Such theories, however, fail to explain the typically observed prize distribution of a few large prizes and a large number of medium ones--hence the medium prizes paradox. In the current...

This paper purports to develop a simple microeconomic model designed to shed light on behavioral change induced by improved information about smoking risks. It predicts the conditions in which improved information indeed increases the demand for cigarettes. After recalling the economic rationale...