AUTHORS: J. Greg George, Glenn W. Harrison, E. Elisabet Rutström and Shabori Sen
ABSTRACT. What are the behavioral effects of voluntary self-protection in situations where the probabilities are unknown to the agent? Virtually all naturally occurring environments of risk management involve subjective probabilities, and many allow decision makers to voluntarily mitigate risk using… more »
AUTHORS: Glenn W. Harrison, Jared M. Johnson and E. Elisabet Rutström
ABSTRACT: In economic decision making most probabilities are formed in a compound manner through the interaction of multiple attributes of events, each of which have likelihoods that are unknown to various degrees. We consider how subjectively formed risk perceptions are affected by… more »
AUTHORS: Xiaohu Ping and George Zanjani
ABSTRACT: Existing research on insurance contract theory emphasizes information problems and demand side issues when explaining contract structure. Supply-side factors, especially risk considerations at the insurer, have received much less attention. In this paper, we extend the optimal contracting framework of Raviv (1979) to explore how background… more »
ABSTRACT: An individual reports subjective beliefs over continuous events using a proper scoring rule, such as the popular Quadratic Scoring Rule. Under some mild additional assumption, it is known that these reports reflect latent subjective beliefs if the individual is risk neutral and obeys Subjective Expected Utility (SEU) theory. It is also… more »
