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defined insurance and non-insurance markets based on the initial loss size, we develop theory to show that insurers with buyer … our theory and find support. Monopolistic insurer-subjects in non-insurance markets increase loss sizes to establish …
Persistent link: https://www.econbiz.de/10011456744
principles of Expected Utility Theory (EUT) and of Portfolio Selection Theory (PST). The experiment is performed with individuals … providing additional risk that is not compensated by additional expected value. We find that the results of our experiment are …
Persistent link: https://www.econbiz.de/10014182702
consistent with microeconomic theory is discussed …
Persistent link: https://www.econbiz.de/10013027527
We propose a new paradigm to study coordination in complex social systems, such as financial markets, that accounts for fundamental uncertainty. This new context has features from prediction markets that have been shown previously to mitigate price bubbles in classical asset market experiments....
Persistent link: https://www.econbiz.de/10011514493
success of a risky project depends on the participation of a minimum number of investors. The experiment is set up as a …
Persistent link: https://www.econbiz.de/10013077574
This paper presents the first laboratory study of risk-sharing without commitment. Our experiment captures the main … for the shape of the constrained optimal risk-sharing arrangement. In our experiment, participants are matched in pairs …-horizon and discounting in the model. Second, at the end of the experiment, a unique period is randomly drawn to count for cash …
Persistent link: https://www.econbiz.de/10014073184
absence of group deliberation − affects the choice. The experiment utilizes the Interdependent Security Dilemma paradigm. In …
Persistent link: https://www.econbiz.de/10014036270
long horizons. We present an experiment comparing decision making under certainty, risk, and ambiguity, over a shorter …
Persistent link: https://www.econbiz.de/10013033292
implementation of profitable building projects. We present a novel laboratory experiment on the feasibility of TDR and simulate the … consumption projects. Overall, we find that TDR are reallocated as suggested by theory, although higher uncertainty has …
Persistent link: https://www.econbiz.de/10013010871
effort choices, and, according to expected utility theory, risk preferences are irrelevant. We derive a closed-form solution … irrelevant. We design a laboratory experiment to test various comparative statics of the model and explore behavioral deviations …
Persistent link: https://www.econbiz.de/10014081228