Coherent-ambiguity aversion is defined within the (Klibanoff et al., Econometrica 73:1849–1892, <CitationRef CitationID="CR40">2005</CitationRef>) smooth-ambiguity model (henceforth KMM) as the combination of choice-ambiguity and value-ambiguity aversion. Five ambiguous decision tasks are analyzed theoretically, where an individual faces...</citationref>

The current note clarifies why, in committees, the prior probability of a correct collective choice might be of particular significance and possibly should sometimes even be the sole appropriate basis for making the collective decision. In particular, we present sufficient conditions for the...

In referendum elections, voters are often required to register simultaneous votes on multiple proposals. The separability problem occurs when a voter’s preferred outcome on one proposal depends on the outcomes of other proposals. This type of interdependence can lead to unsatisfactory or even...

We investigate the determinants of decision rights transfer and its effects on the motivation of an agent. The study is based on a laboratory experiment conducted on 130 subjects playing an innovative principal–agent game. Interestingly, the results show that agents do not favour a delegation...

We consider two no-show paradoxes, in which a voter obtains a preferable outcome by abstaining from a vote. One arises when the casting of a ballot that ranks a candidate in first place causes that candidate to lose the election, superseded by a lower-ranked candidate. The other arises when a...

This paper presents a critical reflection on dynamic consistency as commonly used in economics and decision theory, and on the difficulty to test it experimentally. It distinguishes between the uses of the term dynamic consistency in order to characterize two different properties: the first...

The optimal investment problem is studied for a continuous time incomplete market model. It is assumed that the risk-free rate, the appreciation rates, and the volatility of the stocks are all random; they are independent from the driving Brownian motion, and they are currently observable. It is...

Empirical research often requires a method how to convert a deterministic economic theory into an econometric model. A popular method is to add a random error term on the utility scale. This method, however, ignores stochastic dominance. A modification of this method is proposed to account for...

In a series of one-shot linear public goods game, we ask subjects to report their contributions, their contribution plans for the next period, and their first-order beliefs about their present and future partner. We estimate subjects’ preferences from plan data by a finite mixture approach and...

The paper introduces the problem of unawareness into multi-dimensional Principal–Agent theory. We introduce two key parameters to describe the problem, the extent and the effect of unawareness, show under what conditions it is optimal for the Principal to propose an incomplete or a complete...