ABSTRACT: A generic drug maker that has been sued for infringing a patent on a branded drug will sometimes promise, as part of an agreement settling the litigation, to delay selling its drug until as late as the expiration of the patent term. I adapt the standard optimal… more »
Published in 2019 in Journal of Economic Behavior and Organization, Volume 164.
AUTHORS: Lata Gangadharan, Glenn W. Harrison and Anke D. Leroux
ABSTRACT: Understanding decisions in situations involving multiple risks is vital in many contexts, including the provision of aid to developing countries. Aid typically involves trade-offs over multiple, desirable, but risky… more »
Published in 2018 in Southern Economic Journal, Volume 85, Issue 2.
AUTHORS: Glenn W. Harrison, Andre Hofmeyr, Don Ross, and J. Todd Swarthout
ABSTRACT: There is a rich theoretical literature in economics which models habit-forming behaviors, of which addiction is the exemplar, but there is a paucity of experimental economic studies eliciting… more »
Published in 2016 in The Journal of Risk and Insurance, Volume 83, Issue 1.
AUTHORS: Glenn W. Harrison and Jia Min Ng
ABSTRACT: Economic theory tells us how to evaluate the expected welfare gain from insurance products on offer to individuals. If we know the risk preferences of the individual, and subjective beliefs… more »
Abstract. Recently Haezendonck-Goovaerts risk measure is receiving much attention in actuarial science with applications in the study of optimal portfolio and optimal reinsurance policy. Nonparametric estimation is proposed by Ahn and Shyamalkumar (2014), where the derived asymptotic limit can be employed to construct an interval… more »
AUTHORS: Heba Y. Abdel-Rahim and Douglas E. Stevens
ABSTRACT: We apply insights from a model of social norm activation to an agency model of capital budgeting to develop a positive behavioral relation between information system precision and honesty in managerial reporting. This relation is based on the ability of a precise information system to… more »
ABSTRACT: This paper studies the timing of state-level tort reform enactments between 1971 and 2005. Using discrete time hazard models, we find the level of litigation activity---as measured by incurred liability insurance losses, the number of lawyers, and tort cases commenced---to be the most important and robust… more »
We develop a unified equilibrium model of competitive insurance markets that incorporates the demand and supply of insurance as well as insurers' asset and liability risks. Insurers' assets may be exposed to both idiosyncratic and systemic shocks. We obtain new insights into the relationship between insurance premia… more »