infonet-economy

The probability triangle (also called the Marschak-Machina triangle) allows for compact and intuitive depictions of risk preferences. Here, we develop an analogous tool for choice under uncertainty - the ambiguity triangle - and show that indifference curves in this triangle capture preferences for unknown probabilities. In particular, the ambiguity triangle allows us to examine...

Economists have typically assumed that the only way for leaders to get people to do things is to use carrots (e.g., pay raises) or sticks (e.g., threats of firing) to incentivize a desired behavior. One of the important contributions of recent research on leadership is to test the extent to which this really is true. Can leaders also motivate and inspire workers by their statements...

As China's economy becomes more liberalized, the authorities will scrap growth targets altogether and turn to the more modest notion of growth forecasts.

Wie hart oder nachgiebig sollen Griechenlands Gläubiger gegenüber dem Mittelmeerstaat auftreten? In einem Gastbeitrag warnen drei Ökonomen vor einem Festhalten an starren Vereinbarungen.

In this paper we analyze which graphical representation of risk is most effective in supporting investors to assess the risk and return characteristics of a fund. Moreover, we test on which criteria the investors base their risk taking behavior. To this end we compare return bar charts and price line charts, combined with some additional information such as a risk scale or a gain and...

We study the dynamics of an innovative industry when agents learn about its strength, i.e., the likelihood that it gets hit by negative shocks. Managers can exert risk-prevention effort to mitigate the consequences of such shocks. As time goes by, if no shock occurs, confidence improves. This attracts managers to the innovative sector. But, when confidence becomes high, less managers...

Often, economic policies are directed toward outcomes that are measured as counts. Examples of economic variables that use a basic counting scale are number of children as an indicator of fertility, number of doctor visits as an indicator of health care demand, and number of days absent from work as an indicator of employee shirking. Several econometric methods are available for...

Negative symptoms are a core feature of schizophrenia and have been grouped into 2 factors: a motivational factor, which we refer to as apathy, and a diminished expression factor. Recent studies have shown that apathy is closely linked to functional outcome. However, knowledge about its mechanisms and its relation to decision-making is limited. In the current study, we examined...