intensity is shown to induce a higher default rate and to raise the country risk as reflected in the interest rate associated … default penalty eliminates the adverse effects of country risk on expected income. For such an economy a contingency plan that … effective magnitude of country risk and the incidence of default …

-Expected Utility theories, we strongly reject Prospect Theory probability weighting, we support disappointment aversion if amended to …

The appeal of expected utility theory as a basis for a descriptive model of risky decision making has diminished is a … parametric model of risky decision making. Our results suggest that models which provide for probability transformations are most …-range probability than is proposed by the expected utility model and risk-seeking behavior over "long-shot" odds is common …

This paper introduces the concept of standard risk aversion. A von Neumann-Morgenstern utility function has standard … risk aversion if any risk makes a small reduction in wealth more painful (in the sense of an increased reduction in … expected utility) also makes any undesirable, independent risk more painful. It is shown that, given monotonicity and concavity …

In this paper, we assess the degree to which four of the most commonly used models of risky decision making can explain … enough to approximate Kahnenman and Tversky's prospect theory and that for certain parametric values will yield the expected … explain the decision-making behavior of the majority of our subjects. Surprisingly, we find that the choice behavior of the …

institutional theory that points to stakeholder and institutional dynamics affecting economic incentives to invest in prevention and …In line with the fallacy of riskification of uncertainty by which decision makers believe that the effects of … markets, such as natural disasters, terrorist attacks, and financial crises--as a problem of risk management. This is …

afflict medical decision making, I apply basic decision theory to suggest reasonable decision criteria with well …This paper discusses how limited ability to assess patient risk of illness and predict treatment response may affect …

little about their own pension plans, retirement behavior is strongly affected by pension incentives. We combine … administrative and self-reported pension data to measure the retirement response to actual and perceived financial incentives. We … find that well-informed individuals are five times more responsive to pension incentives than the average individual when …

patient welfare. Physicians' incentives vary based on the organizational environment in which they practice. We use the …, but the magnitude of the decline was smaller in physician-owned surgery centers. Incentives affected physicians' reactions …

world. Yet we know little about the factors that determine a patient's decision to follow treatment recommendations. This … decision. Our findings have important implications for the design of incentive schemes targeted at improving chronic disease …