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An experimental methodology testing for prudence and third-order preferences

Ebert, Sebastian; Wiesen, Daniel - 2009

We propose an experimental method to test individuals for prudence (i.e. downside risk aversion) outside the expected utility framework. Our method relies on a novel representation of compound lotteries which allows for a systematic parameterization that captures the full generality of prudence....

Persistent link: https://www.econbiz.de/10010270008

Stochastic analysis and neural network-based yield prediction with precision agriculture

Shoshi, Humayra; Hanson, Erik; Nganje, William; … - In: Journal of Risk and Financial Management 14 (2021) 9, pp. 1-17

In this paper, we propose a general mathematical model for analyzing yield data. The data analyzed in this paper come from a characteristic corn field in the upper midwestern United States. We derive expressions for statistical moments from the underlying stochastic model. Consequently, we...

Persistent link: https://www.econbiz.de/10013201081

Mistaking Noise for Bias - Victimhood and Hutu-Tutsi Reconciliation in East Africa

Blouin, Arthur; Mukand, Sharun W.; Mukand, Sharun - 2022

difficult. We show that individuals systematically (and mistakenly) blame accidental negative shocks (noise) to the deliberate … intent of individuals (bias). This "victimhood bias" wherein individuals ascribe noise to bias is much larger for (a … suggest that insurance agreements that limit negative shocks and reduce noise, can encourage reconciliation by mitigating …

Persistent link: https://www.econbiz.de/10013353466

Complexity and Time

Enke, Benjamin; Graeber, Thomas; Oprea, Ryan - 2023

We provide experimental evidence that core intertemporal choice anomalies – including extreme short-run impatience, structural estimates of present bias, hyperbolicity and transitivity violations – are driven by complexity rather than time or risk preferences. First, all anomalies also arise...

Persistent link: https://www.econbiz.de/10014290237

Homevoters vs. Leasevoters: A Spatial Analysis of Airport Effects

Ahlfeldt, Gabriel; Maennig, Wolfgang - 2013

We use a public referendum on a new air traffic concept in Berlin, Germany as a natural experiment to analyze how the interaction of tenure and capitalization effects shapes the outcome of direct democracy processes. We distinguish between homevoters, i.e., voters who are homeowners, and...

Persistent link: https://www.econbiz.de/10010317009

Risk Aversion Relates to Cognitive Ability: Fact or Fiction?

Andersson, Ola; Tyran, Jean-Robert; Wengström, Erik; … - 2013

allowing for heterogeneity of noise yields no significant relation between risk aversion and cognitive ability. Our results …

Persistent link: https://www.econbiz.de/10010320403

Quantifying noise in survey expectations

Juodis, Artūras; Kučinskas, Simas - In: Quantitative Economics 14 (2023) 2, pp. 609-650

bias (systematic mistakes) or noise (unsystematic mistakes). We develop a framework for quantifying the level of noise in … structure for individual expectations. Using data from professional forecasters, we find that the magnitude of noise is large …

Persistent link: https://www.econbiz.de/10014536881

Fly or cry: is airport noise costly?

Nitsch, Volker - 2009

Airport noise is costly. Airport location is typically associated with lower property prices. Airport expansion often … sparks protests by local residents. In this paper, I provide new evidence on the costs of airport-related noise (and other …

Persistent link: https://www.econbiz.de/10010265963

Signaling in Deterministic and Stochastic Settings

Normann, Hans-Theo; Jeitschko, Thomas - 2010

We contrast a standard deterministic signaling game with one where the signal-generating mechanism is stochastic. With stochastic signals a unique equilibrium emerges that involves separation and has intuitive comparative-static properties as the degree of signaling depends on the prior type...

Persistent link: https://www.econbiz.de/10010270214

Noise and bias in eliciting preferences

Hey, John Denis; Morone, Andrea; Schmidt, Ulrich - 2007

In the context of eliciting preferences for decision making under risk, we ask the question: "which might be the 'best' method for eliciting such preferences?". It is well known that different methods differ in terms of the bias in the elicitation; it is rather less well-known that different...

Persistent link: https://www.econbiz.de/10010272943