Decisions under unpredictable losses
An experimental test of the descriptive adequacy of the extit{restated diversification principle} is presented. The principle postulates that risk-averse utility maximizers will pool risks for their mutual benefit, even if information is missing about the probabilities of losses. It is enough for pe...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Society for Judgment and Decision Making
2007-10-01
|
| Series: | Judgment and Decision Making |
| Subjects: | |
| Online Access: | http://journal.sjdm.org/jdm71016.pdf |
| id |
doaj-1041f55f659a46269dd1aaf3a50027a1 |
|---|---|
| record_format |
Article |
| spelling |
doaj-1041f55f659a46269dd1aaf3a50027a12021-05-02T02:13:11ZengSociety for Judgment and Decision MakingJudgment and Decision Making1930-29752007-10-012NA312316Decisions under unpredictable lossesAli AhmedAn experimental test of the descriptive adequacy of the extit{restated diversification principle} is presented. The principle postulates that risk-averse utility maximizers will pool risks for their mutual benefit, even if information is missing about the probabilities of losses. It is enough for people to assume that they face equal risks when they pool risks. The results of the experiment support the principle. http://journal.sjdm.org/jdm71016.pdfGroup behaviorloss sharingunpredictable lossesexperimentrisk pooling. |
| collection |
DOAJ |
| language |
English |
| format |
Article |
| sources |
DOAJ |
| author |
Ali Ahmed |
| spellingShingle |
Ali Ahmed Decisions under unpredictable losses Judgment and Decision Making Group behavior loss sharing unpredictable losses experiment risk pooling. |
| author_facet |
Ali Ahmed |
| author_sort |
Ali Ahmed |
| title |
Decisions under unpredictable losses |
| title_short |
Decisions under unpredictable losses |
| title_full |
Decisions under unpredictable losses |
| title_fullStr |
Decisions under unpredictable losses |
| title_full_unstemmed |
Decisions under unpredictable losses |
| title_sort |
decisions under unpredictable losses |
| publisher |
Society for Judgment and Decision Making |
| series |
Judgment and Decision Making |
| issn |
1930-2975 |
| publishDate |
2007-10-01 |
| description |
An experimental test of the descriptive adequacy of the extit{restated diversification principle} is presented. The principle postulates that risk-averse utility maximizers will pool risks for their mutual benefit, even if information is missing about the probabilities of losses. It is enough for people to assume that they face equal risks when they pool risks. The results of the experiment support the principle. |
| topic |
Group behavior loss sharing unpredictable losses experiment risk pooling. |
| url |
http://journal.sjdm.org/jdm71016.pdf |
| work_keys_str_mv |
AT aliahmed decisionsunderunpredictablelosses |
| _version_ |
1721496129402568704 |