Related papers: Price risk aversion vs payoff risk aversion: a gen…
The present paper introduces a theoretical framework through which the degree of risk aversion with respect to uncertain prices can be measured through the context of the indirect utility function (IUF) using a lab experiment. First, the…
In economics, risk aversion is modeled via a concave Bernoulli utility within the expected-utility paradigm. We propose a simple test of expected utility and concavity. We find little support for either: only 30 percent of the choices are…
We derive a closed-form expression capturing the degree of Relative Risk Aversion (RRA) of investors for non-"fair" lotteries. We argue that our formula is superior to earlier methods that have been proposed, as it is a function of only…
Present day LLMs face the challenge of managing affordance-based safety risks-situations where outputs inadvertently facilitate harmful actions due to overlooked logical implications. Traditional safety solutions, such as scalar…
This paper investigates a novel behavioral feature of recursive preferences: aversion to risks that persist over time, or simply \textit{correlation aversion}. Greater persistence provides information about future consumption but reduces…
We develop a structural econometric model to capture the decision dynamics of human evaluators on an online micro-lending platform, and estimate the model parameters using a real-world dataset. We find two types of biases in gender,…
The observed performance difference between women and men on assessments in physics---the "gender gap"---is a significant and persistent inequity which has broad implications for the participation of women in physics. Research also shows…
Using a survey on wage expectations among students at two Swiss institutions of higher education, we examine the wage expectations of our respondents along two main lines. First, we investigate the rationality of wage expectations by…
We propose an empirical method to analyze data from first-price procurements where bidders are asymmetric in their risk-aversion (CRRA) coefficients and distributions of private costs. Our Bayesian approach evaluates the likelihood by…
Men and women systematically differ in their beliefs about their performance relative to others; in particular, men tend to be more overconfident. This paper provides support for one explanation for gender differences in overconfidence,…
Personalized alignment is crucial for enabling Large Language Models (LLMs) to engage effectively in user-centric interactions. However, current methods face a dual challenge: they fail to infer users' deep implicit preferences (including…
We model human decision-making behaviors in a risk-taking task using inverse reinforcement learning (IRL) for the purposes of understanding real human decision making under risk. To the best of our knowledge, this is the first work applying…
Over the past decade, the gender pay gap has remained steady with women earning 84 cents for every dollar earned by men on average. Many studies explain this gap through demand-side bias in the labor market represented through employers'…
Offline Preference-based Reinforcement Learning (PbRL) learns rewards and policies aligned with human preferences without the need for extensive reward engineering and direct interaction with human annotators. However, ensuring safety…
Considering congestion games with uncertain delays, we compute the inefficiency introduced in network routing by risk-averse agents. At equilibrium, agents may select paths that do not minimize the expected latency so as to obtain lower…
This paper considers the optimal portfolio selection problem in a dynamic multi-period stochastic framework with regime switching. The risk preferences are of exponential (CARA) type with an absolute coefficient of risk aversion which…
The article's aim is to provide a solution to the equity premium puzzle with a derived model. The derived model which depends on Consumption Capital Asset Pricing Model gives a solution to the puzzle with the values of coefficient of…
We build on theoretical results from the mechanism design literature to analyze empirical models of second-degree price discrimination (2PD). We show that for a random-coefficients discrete choice ("BLP") model to be suitable for studying…
The persistent underrepresentation of women and gender minorities within the physical sciences remains a significant issue. This study investigates gender dynamics in introductory algebra-based physics laboratories, focusing on…
There has been an increasing trend of females performing better than males academically across the mathematical engineering courses. To confirm this assumption, final marks of two independent samples of students from Calculus courses across…