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Risk and Risk Aversion Effects in Contests with Contingent Payments
(Private Enterprise Research Center, Texas A&M University, 2018-01-18)
Firms seeking new products, investors backing competitors, and government agencies in search of design solutions are all examples of different models of contest design found in the marketplace. In PERC’s working paper ...
Restricted Increases in Risk Aversion and Their Application
(Private Enterprise Research Center, Texas A&M University, 2015-02-23)
This paper proposes two restricted forms of an increase in risk aversion. Using examples from portfolio choice, self-protection and insurance demand, it is shown that these stronger notions of increased risk aversion ...
Tradeoffs for Downside Risk-Averse Decision-Makers and the Self-Protection Decision
(Private Enterprise Research Center, Texas A&M University, 2015-03-26)
Besides risk aversion, decision makers are often assumed to be downside risk averse. In order to investigate tradeoffs that downside risk averse decision makers face, this paper proposes five stochastic orders, each ...
Risk and Risk Aversion Effects in Contests with Contingent Payments
(Private Enterprise Research Center, Texas A&M University, 2017-03-01)
Contests by their very nature involve risk, winning and losing are both possible, and the gain from winning can itself be uncertain. The participants in a contest use resources to increase their chance of winning. The main ...
The Increase Convex Order and the Tradeoff of Size for Risk
(Private Enterprise Research Center, Texas A&M University, 2014-02-01)
One random variable is larger than another in the increasing convex order if that random variable is preferred or indifferent to the other by all decision makers with increasing and convex utility functions. Decision makers ...
Tradeoffs for Downside Risk-Averse Decision-Makers and the Self-Protection Decision
(Private Enterprise Research Center, Texas A&M University, 2015-09-01)
Agents who are averse to increases in downside risk are defined as being averse to changes that shift a certain amount of risk to a lower income level. For downside risk averse decision makers, there are several tradeoffs ...