Working Papers

WP 2016_08 The Psychology of Human Risk Preferences and Vulnerability to Scare-Mongers: Experimental Economic Tools for Hypothesis Formulation and Testing

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Published in 2016 in Journal of Cognition and Culture, Volume 16, Issue 5.

ABSTRACT: The Internet and social media have opened niches for political exploitation of human dispositions to hyper-alarmed states that amplify perceived threats relative to their objective probabilities of occurrence. Researchers should aim to observe the dynamic “ramping up”… more »

WP 2016_06 Varieties of Paternalism and the Heterogeneity of Utility Structures

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Published in Journal of Economic Methodology, Volume 25, Issue 1.

ABSTRACT: A principal source of interest in behavioral economics has been its advertised contributions to policies aimed at ‘nudging’ people away from allegedly natural but self-defeating behavior toward patterns of response thought more likely to improve their welfare. This has occasioned… more »

WP 2016_05 Cumulative Prospect Theory in the Laboratory: A Reconsideration

Posted On June 30, 2016
Categories Working Papers, WP 2016

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ABSTRACT: We take Cumulative Prospect Theory (CPT) seriously by rigorously estimating structural models using the full set of CPT parameters. Much of the literature only estimates a subset of CPT parameters, or more simply assume CPT parameter values from prior studies. Our data are from substantial laboratory experiments with undergraduate students… more »

WP 2016_04 Small Stakes Risk Aversion in the Laboratory: A Reconsideration

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Forthcoming – Economic Letters

ABSTRACT: Evidence of risk aversion in laboratory settings over small stakes leads to a priori implausible levels of risk aversion over large stakes under certain assumptions. One core assumption in statements of this calibration puzzle is that small-stakes risk aversion is observed over all levels of wealth, or… more »

WP 2016_03 Old-Age Provision: Past, Present, Future

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Published in 2016 in European Actuarial Journal, Volume 6, Issue 2.

ABSTRACT: This is a summary of the main topics and findings from the Swiss Risk and Insurance Forum 2015. That event gathered experts from academia, insurance industry, regulatory bodies, and consulting companies to discuss the past and current developments and… more »

WP 2016-02 Gambling Problems in the General Danish Population: Survey Evidence

Posted On June 2, 2016
Categories Working Papers, WP 2016

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ABSTRACT: We compare several popular survey instruments for measuring gambling behavior and gambling propensity to assess if they differ in their classification of individuals in the general adult Danish population. We also examine correlations with standard survey instruments for alcohol use, anxiety, depression and impulsivity. A feature of our design is that… more »

WP 2015-13 The Methodologies of Behavioral Insurance: Introduction to the Special Issue

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Published in 2016 in The Journal of Risk and Insurance, Volume 83, Issue 1.

ABSTRACT: The generic insurance product involves an agent giving up a certain amount of money ex ante some risky event in the expectation of being given some money in the future if something unfortunate occurs. It is immediate… more »