Catastrophe insurance differs from regular insurance in that individual claims are correlated and insurers have to pay more clients at once, which creates a liquidity strain. In this paper, I show two related findings: first, that when customers know their claims are correlated, this correlation...

This study uses the television show Cash Cab as a natural experiment to investigate gender differences in decision making under uncertainty. As expected, men are much more likely to accept the end-of-game gamble than are women, but men and women appear to weigh performance variables differently...

This paper proposes a class of independence axioms for simple acts. By introducing the <InlineEquation ID="IEq1"> <EquationSource Format="TEX">$${\mathcal {E}}$$</EquationSource> <EquationSource Format="MATHML"> <math xmlns:xlink="http://www.w3.org/1999/xlink"> <mi mathvariant="script">E</mi> </math> </EquationSource> </InlineEquation>-cominimum independence axiom that is stronger than the comonotonic independence axiom but weaker than the independence axiom, we provide a new axiomatization theorem of simple acts...</equationsource></equationsource></inlineequation>

We introduce a solution concept for cooperative games with transferable utility and a coalition structure that is proportional for two-player games. Our value is obtained from generalizing a proportional value for cooperative games with transferable utility (Ortmann <CitationRef CitationID="CR8">2000</CitationRef>) in a way that parallels...</citationref>

We analyze the effects of uncertainty on WTA, WTP and the WTA–WTP gap. Extending the approach of Weber (Econom Lett 80:311–315, <CitationRef CitationID="CR17">2003</CitationRef>) to the case of lotteries, we develop an exact expression for the WTA–WTP gap that allows identification of its magnitude under different utility...</citationref>

This paper investigates behavior in finitely repeated simultaneous and sequential-move prisoner’s dilemma games when there is one-sided incomplete information and signaling about players’ concerns for fairness, specifically, their preferences regarding “inequity aversion.” In this...

The problem of how to rationally aggregate probability measures occurs in particular (i) when a group of agents, each holding probabilistic beliefs, needs to rationalise a collective decision on the basis of a single ‘aggregate belief system’ and (ii) when an individual whose belief system...

A long tradition suggests a fundamental distinction between situations of risk, where true objective probabilities are known, and unmeasurable uncertainties where no such probabilities are given. This distinction can be captured in a Bayesian model where uncertainty is represented by the...

This paper studies information transmission between an uninformed decision maker (receiver) and an informed agent (sender) who have asymmetric beliefs (“confidence”) on the sender’s ability (“competence”) to observe the state of nature. We find that even when the material payoffs of...

In his discussion of minimax decision rules, Savage (The foundations of statistics, Dover Publications Inc., Mineola <CitationRef CitationID="CR8">1954</CitationRef>, p. 170) presents an example purporting to show that minimax applied to negative expected utility (referred to by Savage as “negative income”) is an inadequate decision...</citationref>