Modeling human cognition is challenging because there are infinitely many mechanisms
that can generate any given observation. Some researchers address this by constraining the …

Decisions to purchase insurance should be a perfect place to see economic theory at work
in general, and behavioral economics at work in particular. We have well‐developed …

Abstract We take Cumulative Prospect Theory (CPT) seriously by rigorously estimating
structural models using the full set of CPT parameters. Much of the literature only estimates a …

Behavioral economics poses a challenge for the welfare evaluation of choices, particularly
those that involve risk. It demands that we recognize that the descriptive account of behavior …

Agricultural index insurance contracts increasingly use remote sensing data to estimate
losses and determine indemnity payouts. Index insurance contracts inevitably make errors …

A principal source of interest in behavioral economics has been its advertised contributions
to policies aimed at 'nudging'people away from allegedly natural but self-defeating behavior …

Behavioral economics poses a challenge for the welfare evaluation of insurance products
and policy. It demands that we recognize that the descriptive account of behavior toward …

Behavioral welfare economics usually aims at mere means paternalism, helping agents
better pursue their own goals. This paper discusses one initially promising way to inform …

Avoiding risk in financial decisions is credited to be a key contributor to persistent poverty
and poverty traps. In spite of this, the methods used to measure behaviour under risk rarely …

Despite the dynamic development of the discipline of economics, the ways in which
economics is taught and how it defines its basic principles have hardly changed, resulting in …