Decisions under risk and ambiguity are frequently encountered nowadays, and associated preferences are frequently quantified. This article deals with the relationship between individuals’ preferences towards risk and ambiguity. In particular, we question the correlation of the preferences and...

Most large-scale economic experiments use a between-subjects random incentive system-BRIS-which selects a subset of the participants at random and offers real payment only to the selected participants. We evaluate the relative impact of nominal payoffs and the selection probability on the...

We develop a formal model to compare the incentive effect of strict liability rules in a risky and ambiguous environment. The firm's business activity entails a risk of technological disaster, which likelihood is a decreasing function of prevention. To assess our theoretical predictions, we...

This paper studies individuals' preference for reducing advantageous inequality in the distribution of gains and losses. Combining the inequality aversion model of Fehr and Schmidt (1999) with loss aversion à la Kahneman and Tversky (1979), we predict the relative dislike for advantageous...