Using a computable hedonic equilibrium model of the labor market, we numerically simulate the interactions between workers and firms as tempered by the state and federal regulations intended to influence workplace safety. We compute the changes needed for SSHA to become economically meaningful...

Intertemporal choice has obvious similarities with choice under uncertainty. However, because of technical difficulties in mapping results between the two domains, theoretical analysis of these topics has proceeded independently. In this article, we show that, using Rank Dependent Expected...

We propose a guaranteed renewability (GR) insurance in which a sequence of premiums would enable insurers to break even and would be chosen by both low- and high-risk buyers, whether or not they had suffered a loss. The premium schedule would continually decline over time, as the insurer...

Since Fishburn and Porter (1976), it has been known that a first-order dominant shift in the distribution of random returns of an asset does not necessarily induce a risk-averse decision maker to increase his holdings of that improved asset. To obtain the desired comparative statics result, one...

A well-known theorem of Blackwell states that, when quantity of information is properly defined, every expected utility decisionmaker prefers more information to less; for more general preferences, however, the theorem is no longer true. In this article, we investigate the extent to which...

The role of unions in providing compensating differentials for wage and hours risk is analyzed. Unions are shown to increase wages for workers in more risky jobs. A negative compensating differential for nonunion workers is taken as evidence of worker-specific, or supply-side risk. This...

Recent experimental evidence has concluded that experimentally observed juxtaposition effects, as predicted by regret theory, are largely attributable to "event-splitting effects" (ESEs) whereby the subjective decision weight attached to an outcome depends on the number of, as well as on the...

This article reports the results of a panel study investigating the effects of different radon risk information booklets on households' decisions to undertake mitigation. Multinominal logit models are used to describe how differences in the design of the information booklets along with the radon...

In this article, we extend recent work on the inferential impact of errors in data to a decision-making setting. In the context of a simple quality-control example, we illustrate how errors can cause substantial reductions in the value of information from a sample and how uncertainty about error...