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Blume, Lawrence E.; Easley, David; Halpern, Joseph Y. - 2009

Contemporary approaches to decision making describe a decision problem by sets of states and outcomes, and a rich set … of acts: functions from states to outcomes over which the decision maker (DM) has preferences. Real problems do not come … decision making, in which the primitive objects of choice are syntactic programs. We show that if the DM's preference relation …

Persistent link: https://www.econbiz.de/10010294014

Experience effects in economics lessons from past and current crises

Malmendier, Ulrike - 2023

Persistent link: https://www.econbiz.de/10013540273

An economic index of riskiness

Aumann, Robert J.; Serrano, Roberto - 2006

Define the riskiness of a gamble as the reciprocal of the absolute risk aversion (ARA) of an individual with constant ARA who is indifferent between taking and not taking that gamble. We characterize this index by axioms, chief among them a “duality” axiom which, roughly speaking, asserts...

Persistent link: https://www.econbiz.de/10010318897

The dead anyway effect revis(it)ed

Breyer, Friedrich; Felder, Stefan - 2002

In the expected-utility theory of the monetary value of a statistical life, the so-called "dead-anyway" effect discovered by Pratt and Zeckhauser (1996) asserts that an individuals' willingness to pay (WTP) for small reductions in mortality risk increases with the initial level of risk. Their...

Persistent link: https://www.econbiz.de/10010260809

An Experimental Investigation of the Role of Errors for Explaining Violations of Expected Utility

Neugebauer, Tibor; Schmidt, Ulrich - 2003

One possible conclusion from recent experimental research on decision making under risk is that observed behaviour can … of the subjects and most of the choice problems under risk. However, it turns out that for decision problems under …

Persistent link: https://www.econbiz.de/10010261667

An Experimental Investigation of Alternatives to Expected Utility Using Pricing Data

Morone, Andrea; Schmidt, Ulrich - 2006

Experimental research on decision making under risk has until now always employed choice data in order to evaluate the …

Persistent link: https://www.econbiz.de/10010296261

Formal vs. informal protection instruments and the strategic use of patents in an Expected-Utility framework

Neuhäusler, Peter - 2009

The present article examines the question whether or not different types of firms tend to protect their innovations with varying mechanisms. Against the background of the Expected-Utility Theory (EU-Theory), firms are differentiated by their size, technological field and their degree of...

Persistent link: https://www.econbiz.de/10010299401

Risk Aversion and the Subjective Time Discount Rate: A Joint Approach

van Praag, Bernard M.S.; Booij, Adam S. - 2003

In this paper we analyze a large sample of individual responses to six lottery questions. Wederive a simultaneous estimate of risk aversion ? and the time preference discount rate ? perindividual. This can be done because the consumption of a large prize is smoothed over a largertime period. It...

Persistent link: https://www.econbiz.de/10010324926

Weitzman meets Nordhaus: Expected utility and catastrophic risk in a stochastic economy-climate model

Ikefuji, Masako; Laeven, Roger J. A.; Magnus, Jan R.; … - 2011

We specify a stochastic economy-climate model, adapting Nordhaus' deterministic economy-climate model by allowing for Weitzman-type stochasticity. We show that, under expected power utility, the model is fragile to heavy-tailed distributional assumptions and we derive necessary and sufficient...

Persistent link: https://www.econbiz.de/10010332432

An Experimental Investigation of Alternatives to Expected Utility Using Pricing Data

Schmidt, Ulrich; Morone, Andrea - 2003

Experimental research on decision making under risk has until now always employed choice data in order to evaluate the …

Persistent link: https://www.econbiz.de/10010278003