We study route choice behavior when travel time is uncertain. In this case, users do not minimize expected travel time but also take into account travel time variability. We collected survey data and analyze them with a method based on the ordered probit model. This allows us to have an ordinal as well as cardinal measures of risk aversion. Such an approach is therefore consistent with expected...

Performance Pay and Risk Aversion A main prediction of agency theory is the well known risk-incentive trade-off. Incentive contracts should be found in environments with little uncertainty and for agents with low degrees of risk aversion. There is an ongoing debate in the literature about the first trade-off. Due to lack of data, there has so far been hardly any empirical evidence about the sec...

The controversy regarding extractions for othodontic treatment continues and today is invoked by some as a feature of the “standard of care.” For this and other reasons, it is necessary to have contemporary data on the general prevalence of orthodontic extractions and the interpractice ran of extraction rates in current specialty practice and, if possible, also to establish possible reasons for...

In this paper it has been attempted to investigate the capability of the consumption-based capital asset pricing model (CCAPM), using the general method of moment (GMM), with regard to the Epstien-zin recursive preferences model for Iran's capital market. Generally speaking, recursive utility permits disentangling of the two psychologically separate concepts of risk aversion and elasticity of i...

The goal of this paper is to investigate the interaction between social ties and deceptive behavior within an experimental setting. To do so, we implement a modified sender-receiver game in which a sender obtains a private signal regarding the value of a state variable and sends a message related to the value of this state variable to the receiver. The sender is allowed to be truthful or to lie...

This paper considers a general equilibrium model in which the distinction between uncertainty and risk is formalized by assuming agents have incomplete preferences over statecontingent consumption bundles, as in Bewley (1986). Without completeness, individual decision making depends on a set of probability distributions over the state space. A bundle is preferred to another if and only if it ha...

We study the impact of loss-aversion and the threat of catastrophic damages, which we jointly call threshold concerns, on international environmental agreements. We aim to understand whether a threshold for dangerous climate change is as an effective coordination device for countries to overcome the global free-riding problem and abate sufficiently to avoid disaster. We focus on loss-averse cou...

The asymmetric dominance effect refers to the phenomenon according to which the choice probability of an alternative increases when an inferior alternative the decoy is included into the choice set. The objective of this experimental study is twofold. First, we investigate the asymmetric dominance effect on two-outcome lotteries with almost equal expected values. We find that the impact of a de...

Bank and e-commerce financing strategies are the main ways for farmers to solve problem of capital shortage. Aiming at uncertainty risk output agricultural product supply chain, we consider attitudes farmers; construct Stackelberg game model under different obtain optimal decision explore expected factors, degree farmers’ aversion, e-commerce’s interest rates on decision-making results. Our res...