Economic theory suggests that the deterrence of deviant behavior is driven by a combination of severity and certainty … of punishment. This paper presents the first controlled experiment to study a third important factor that has been mainly …

In an experiment that elicits subjects’ willingness to pay (WTP) for the outcome of a lottery, we confirm the fourfold … pattern of risk attitudes described by Kahneman and Tversky. In addition, we document a systematic effect of stake sizes on … the magnitude and sign of the relative risk premium, holding fixed both the probability that a lottery pays off and the …

to reduce these insurance gaps. We examine insurance decisions in a computer-administered experiment that makes several …-term insurance contracts that automatically consider price changes over time can thus also deliver a reduction in the insurance gap …. Third, we find that once people have made a decision, they tend to repeat it, demonstrating a strong preference for the …

the realized state of the world. In a second experiment, risk affects the earnings of givers but not of beneficiaries. We …The decision how to share resources with others often needs to be taken under uncertainty on its allocational … consequences. Although risk preferences are likely important, existing research is silent about how social and risk preferences …

We propose a new measure of deviations from expected utility, given data on economic choices under risk and uncertainty … deviation (in beliefs, utility, or perceived prices) is within e of expected utility theory. The number e can then be used as a … distance to the theory. We apply our methodology to three recent large-scale experiments. Many subjects in those experiments …

insensitivity, and the magnitude of decision errors. These parameters are very heterogeneous in the population. At the same time …

This paper presents the results of an experiment that completely measures the utility function and probability … individuals are found to be more risk averse, in agreement with common findings. Unlike previous studies that ascribed gender … differences in risk attitudes solely to differences in the degree utility curvature, however, our results show that this finding …

variable is the particular decision stage at which a global risk is resolved: (i) before the investment decision; (ii) after … the investment decision but before the resolution of the investment risk; (iii) after the resolution of the investment …From the viewpoint of the independence axiom of expected utility theory, an interesting empirical dynamic choice …

We use a laboratory experiment to identify the impact of risk in the private and public dimensions of social … to others. We find a detrimental effect of risk on public good provision when returns in both dimensions are risky and … positively correlated or independent. A negative correlation limits the downside risk and leads to more stable social investments …

This paper explores three aspects of strategic uncertainty: its relation to risk, predictability of behavior and … subjective beliefs of players. In a laboratory experiment we measure subjects? certainty equivalents for three coordination games … and one lottery. Behavior in coordination games is related to risk aversion, experience seeking, and age. From the …