Government relief is offered for a wide range of risks--natural disaster, economic dislocation, sickness, and injury. This article explores the effect of such relief on incentives and the allocation of risk in a model with private insurance. It is shown that government relief is inefficient,...

Intransitive preferences have been a topic of curiosity, study, and debate over the past 40 yers. Many economists and decision theorists insist on transitivity as the cornerstone of rational choice, and even in behavioral decision theory intransitivities are often attributed to faulty...

Our research infers the effects of institutionalized wage setting and length worker-firm attachment by comparing estimated compensating wage differentials for fatal injury risk in Japanese, Australian, and U.S. manufacturing. Hedonic labor market equilibrium regressions for Japan reveal a...

An additive-across-states decomposition of lexicographic linear utility is easily obtained under a mild structural assumption concerning sufficient richness of acts in the domain of preference assessment, but the vectoral nature of lexicographic utility introduces two complexities absent in the...

During the past 40 years there has been an accumulation of experimental evidence suggesting that most of the axioms of expected utility theory are liable to be systematically violated by substantial numbers of individuals. Much of this evidence has focused in failures of the independence axioms...