Former studies have shown that people tend to give buying prices that are lower than selling prices. In our study, we investigate if this willingness-to-accept and willingness-to-pay disparity is affected by ambiguity. Using a Becker, DeGroot, and Marschak procedure, we elicit buying, selling,...

Experimental studies have discovered behavior that is inconsistent with the expected utility model (EU) of risky choice (von Neumann and Morgenstern, 1953). The two approaches to address these paradoxes are tested: generalized expected utility models (GEU) and models incorporating...

Using an original data set, this article presents the first effort to compare systematically the values of a statistical life obtained from the two main methodologies existing in the literature - the revealed-preference approach (wage-risk analysis) and the contingent-valuation approach -...

Negative shocks to industry capital and significant capital adjustment costs have been offered as an explanation of periodic "crises" in the property-liability insurance market. According to these capacity constraint models, in which post-shock production must meet a solvency constraint,...