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Lattices and Lotteries in Apportioning Risk

Schlesinger, Harris - 2014

Eeckhoudt and Schlesinger (2006), based upon simple lottery preference. This article show how the mathematics of lattice theory …

Persistent link: https://www.econbiz.de/10013043176

An Experimental Investigation of Risk Sharing and Adverse Selection

Tausch, Franziska - 2013

Does adverse selection hamper the effectiveness of voluntary risk sharing? How do differences in risk profiles affect adverse selection? We experimentally investigate individuals' willingness to share risks with others. Across treatments we vary how risk profiles differ between individuals. We...

Persistent link: https://www.econbiz.de/10013082973

Revealed Relative Utilitarianism

Borgers, Tilman - 2017

We consider the aggregation of individual agents' von Neumann-Morgenstern preferences over lotteries into a social planner's von Neumann-Morgenstern preference. We start from Harsanyi's axiomatization of utilitarianism, and ask under which conditions a social preference order that satisfies...

Persistent link: https://www.econbiz.de/10012947990

When is Ambiguity-Attitude Constant?

Eichberger, Jürgen; Grant, Simon; Kelsey, David - 2021

This paper studies how updating affects ambiguity-attitude. In particular we focus on the generalized Bayesian update of the Jaffray-Phillipe sub-class of Choquet Expected Utility preferences. We find conditions for ambiguity-attitude to be the same before and after updating. A necessary and...

Persistent link: https://www.econbiz.de/10013315928

Risk-Taking-Neutral Background Risk

Franke, Günter - 2013

We define a class of risk-taking-neutral (RTN) background risks. These background risks have the property that they will not alter decisions made with respect to another risk, for individuals with HARA utility. If we wish to compare a decision made with and without some exogenous background...

Persistent link: https://www.econbiz.de/10013087730

Optimal Policy and the Risk Properties of Human Capital Reconsidered

Anderberg, Dan - 2008

This paper considers how optimal education and tax policy depends on the risk properties of human capital. It is demonstrated that a key feature of human capital investments is whether they increase or decrease wage risk. In a benchmark model it is shown that this feature alone determines...

Persistent link: https://www.econbiz.de/10012768814

Export Decision Under Risk

Sousa, José de; Disdier, Anne-Célia; Gaigné, Carl - 2021

Using firm and industry data, we establish two facts: (i) Uncertainty about demand conditions not only reduces export sales and exporting probabilities but also makes exports less sensitive to trade policy; (ii) the most productive exporters are more affected by higher industry-wide expenditure...

Persistent link: https://www.econbiz.de/10013315484

Differential Prize Taxation and Structural Discrimination in Contests

Mealem, Yosef - 2012

This paper evaluates differential prize taxation and structural discrimination as a means of increasing efforts in the most widely studied contests. We establish that a designer who maximizes efforts subject to a balanced-budget constraint prefers dual discrimination, namely, change of the...

Persistent link: https://www.econbiz.de/10013105142

Consuming Your Way to Efficiency : Public Goods Provision Through Non-Distortionary Tax Lotteries

Giebe, Thomas - 2013

We revisit the classical result that financing a pure public good through taxation of private consumption is inefficient. To this standard setup we add a consumption contest in which consumers can win a prize. We show that an appropriately chosen contest — which we call a ‘tax lottery' —...

Persistent link: https://www.econbiz.de/10013082023

Gambling to Leapfrog in Status?

Friehe, Tim - 2013

This paper shows that households with positional concerns and convex status utility use gambling to attempt … results strongly indicate that households who care about status are more likely to participate in gambling and invest more in … gambling, while they save less. In addition, results regarding socio-economic and demographic characteristics are reported. For …

Persistent link: https://www.econbiz.de/10013083874