ABSTRACT: I present new estimates of the probability weighting functions found in rank-dependent theories of choice under risk. These estimates are unusual in two senses. First, they are free of functional form assumptions about both utility and weighting functions, and they are entirely based on binary discrete choices and not… more »
ABSTRACT: Does the desirability of social institutions for public goods provision depend on the extent to which they include mechanisms for endogenous enforcement of cooperative behavior? We consider alternative institutions that vary the use of direct punishments to promote social cooperation. In one institution, subjects participate in a public goods… more »
Published in 2019 in The Geneva Risk and Insurance Review, Volume 44, Issue 2.
ABSTRACT: Behavioral economics poses a challenge for the welfare evaluation of insurance products and policy. It demands that we recognize that the descriptive account of behavior toward insurance depends on risk and time preferences that might… more »
Published in 2019 in Risk Management & Insurance Review, Volume 22.
ABSTRACT: Decisions to purchase insurance should be a perfect place to see economic theory at work in general, and behavioral economics at work in particular. We have well‐developed theories of the demand for, and welfare evaluation of, insurance products.… more »
ABSTRACT: Accurately estimating risk preferences is of critical importance when evaluating data from many economic experiments or behavioral interactions. I conduct power analyses over two lottery batteries designed to classify individual subjects as one of a number of alternative specifications of risk preference models. I propose a conservative case in which… more »
ABSTRACT: Addictions are typically characterised by cycles of abstinence and relapse over many years, with a variety of resolution states. Economic models of addiction… more »
Forthcoming – Journal of the Economic Science Association
ABSTRACT: We examine the ability of eye movement data to help understand the determinants of decision making over risky prospects. We start with structural models of choice under risk, and use that structure to inform what we identify from the use of… more »
ABSTRACT: Poverty induces vulnerability in many dimensions, including health, literacy, and finances. Poverty is associated with volatility in both income and expenses. The ability of a person in poverty to manage such multi-dimensional risk depends to a large extent on risk attitudes. In… more »
ABSTRACT: Economists and psychologists have sought to model and explain both impulsive behavior and the costly but often successful mechanisms by which people control it. Ainslie  suggests that self-control is often achieved on account of a phenomenon he calls “choice bundling.” This refers to re-framing of series of discrete… more »
ABSTRACT: We study consumers’ responses to removing a saving constraint. Mortgage run-offs predictably relax a saving constraint for borrowers whose mortgage committed them to save by paying down principal. Using the entire Danish population, we identify mortgages on track to run off between 1995 and 2014. We measure the effect of… more »