Responsibility Effects in Decision Making under Risk

We systematically explore decision situations in which a decision maker bears responsibility for somebody else's outcomes as well as for her own in situations of payoff equality. In the gain domain we confirm the intuition that being responsible for somebody else's payoffs increases risk aversion. This is however not attributable to a 'cautious shift' as often thought. Indeed, looking at risk attitudes in the loss domain, we find an increase in risk seeking under responsibility. This raises issues about the nature of various decision biases under risk, and to what extent changed behavior under responsibility may depend on a social norm of caution in situations of responsibility versus naive corrections from perceived biases. To further explore this issue, we designed a second experiment to explore risk-taking behavior for gain prospects offering very small or very large probabilities of winning. For large probabilities, we find increased risk aversion, thus confirming our earlier finding. For small probabilities however, we find an increase of risk seeking under conditions of responsibility. The latter finding thus discredits hypotheses of a social rule dictating caution under responsibility, and can be explained through flexible self-correction models predicting an accentuation of the fourfold pattern of risk attitudes predicted by prospect theory. An additional accountability mechanism does not change risk behavior, except for mixed prospects, in which it reduces loss aversion. This indicates that loss aversion is of a fundamentally different nature than probability weighting or utility curvature. Implications for debiasing are discussed

Worker Characteristics and Wage Differentials: Evidence from a Gift-Exchange Experiment

There is ample empirical evidence indicating that a substantial fraction of the population exhibits social preferences. Recent work also shows that social preferences influence the effectiveness of incentives in labor relations. Hence when making contracting decisions, employers should take into account that workers are heterogenous with respect to both their productivity and their social preferences. This paper presents causal evidence that they do. In a real-effort experiment, we elicit measures of workers’ productivity and trustworthiness and make this information available to potential employers. Our data show that employers pay significant wage premia for both traits. Firms make highest profits with trustworthy workers, in particular with highly productive and trustworthy workers. We also document differences in the strength of gift exchange across worker types. In particular, output and profit levels of trustworthy workers are less dispersed than those of not-trustworthy workers.information, skills, laboratory experiments, gift exchange games, optimal contracts

Responsibility Effects in Decision Making under Risk

We systematically explore decision situations in which a decision maker bears responsibility for somebody else's outcomes as well as for her own in situations of payoff equality. In the gain domain we confirm the intuition that being responsible for somebody else's payoffs increases risk aversion. This is however not attributable to a 'cautious shift' as often thought. Indeed, looking at risk attitudes in the loss domain, we find an increase in risk seeking under responsibility. This raises issues about the nature of various decision biases under risk, and to what extent changed behavior under responsibility may depend on a social norm of caution in situations of responsibility versus naive corrections from perceived biases. To further explore this issue, we designed a second experiment to explore risk-taking behavior for gain prospects offering very small or very large probabilities of winning. For large probabilities, we find increased risk aversion, thus confirming our earlier finding. For small probabilities however, we find an increase of risk seeking under conditions of responsibility. The latter finding thus discredits hypotheses of a social rule dictating caution under responsibility, and can be explained through flexible self-correction models predicting an accentuation of the fourfold pattern of risk attitudes predicted by prospect theory. An additional accountability mechanism does not change risk behavior, except for mixed prospects, in which it reduces loss aversion. This indicates that loss aversion is of a fundamentally different nature than probability weighting or utility curvature. Implications for debiasing are discussed.risk attitude; other-regarding preferences; prospect theory; agency; social norms

Towards a foundation for holistic power system validation and testing

Renewable energy sources and further electrificationof energy consumption are key enablers for decreasing green-house gas emissions, but also introduce increased complexitywithin the electric power system. The increased availability ofautomation, information and communication technology, andintelligent solutions for system operation have transformed thepower system into a smart grid. In order to support thedevelopment process of smart grid solutions on the system level,testing has to be done in a holistic manner, covering the multi-domain aspect of such complex systems. This paper introducesthe concept of holistic power system testing and discuss first stepstowards a corresponding methodology that is being developed inthe European ERIGrid research infrastructure project.Comment: 2016 IEEE 21st International Conference on Emerging Technologies and Factory Automation (ETFA

Submarine slope failure offshore Uruguay - first results

New geophysical acquired during cruise M78 with RV “Meteor” in 2009 reveal a large-scale slope failure complex. Positioned between 1800 and 3300 m water depth, the slope failure affected an area of at least 1200 km2. The failure is hosted in contouritic deposits. The morphology of the up 70 m high headwalls is underlain by a deeper reflector which we interpret as detachment. Listric faults positioned upslope these headwalls root in this detachment and are precursor of future failure at this location. The detachment correlates with a regional BSR mapped by Uruguayan colleagues. Cores recovered from 3 transects across the failure complex confirm that the acoustic transparent units are debrites. Sedimentological evidence in accordance with hydro-acoustic data indicate that debrites deposited downslope this failure complex are recent features on the slope

New hydroacoustic and core data reveal sediment transport patterns off Uruguay

Submarine landslides cause slope instabilities and might damage sea-floor infrastructure or even generate tsunami waves. Therefore it is of major importance to understand all processes related to gravity-driven mass wasting and slope stability at continental margins. New swath bathymetry and parametric echo-sounding data from the Uruguay shelf and slope north-east of the Rio de la Plata were collected during METEOR Cruise M78/3. These data are investigated in order to understand mass wasting and sedimentary transport processes at the margin off Uruguay. Large amounts of silty suspension freight are delivered from the Rio de la Plata estuary. These sediments are potentially unstable, leading to numerous mass transport units in the working area. Prominent features identified in the study include slide deposits, channels and several prominent escarpment structures. The situation is complicated by intensive slope parallel sediment transport due to strong contour currents. Our data indicate interaction between gravity-driven downslope transport and alongslope sediment transport. Contourite deposits in the headwall areas of mass wasting events suggest widespread weak layers at those deposits. The up to 70m-high headwalls, are focusing contour currents resulting in small alongslope channels. Future work will concentrate on the reconstruction of the geological/sedimentological history of the study area in order assess slope stability and sediment transport in greater detail

Sediment dynamics and geohazards offshore Uruguay and northern Argentina: first results from the multi-disciplinary Meteor-cruise M78-3

About 90% of the sediments generated by weathering and erosion on land get finally deposited at the ocean margins. The sediment distribution processes and landscape evolution on land are relatively well understood, but comparably little is known about the role and relative importance of marine sediment dynamics in controlling the architectural evolution of ocean margins. Important players include hemi-pelagic settling, down-slope and current-controlled along-slope sediment transport, depositional and post-depositional sedimentary processes (e.g. consolidation and diagenesis), as well as the destabilization of sediment bodies and their erosion. Submarine landslides in this context thus may represent an important sediment transport process, but also a major geo-hazard due to the increasing number of offshore constructions as well as their potential to instantaneously displace large water masses triggering waves in densely populated coastal areas. Here we present first results from a seagoing expedition that aimed at investigating the interaction processes of sediment redistribution, partitioning, deposition and diagenesis from the coast to the deep-sea along the western South-Atlantic passive continental margin. During RV Meteor Cruise M78/3 in May-July 2009 the shelf, slope and rise offshore Argentina and Uruguay have been investigated by means of hydroacoustic and seismic mapping as well as geological sampling with conventional coring tools as well as the new MARUM seafloor drill rig (MeBo) that revealed recovery of geological strata sampled from up to 50m below seafloor. The working area is characterized by a high amount of fluvial input by the Rio de la Plata river. The continental slope is relatively wide and shows average slope gradients between 1 and 2.5 but locally higher slope gradients may occur (>5). The transition for the continental rise with low slope gradients is found in ~3000 m water depth. The working area is located in a highly dynamic oceanographic regime. Cold Antarctic water masses of the northward flowing Malvina current meet warm water masses of the southward flowing Brazil current in the working area. Various types of sediment instabilities have been imaged in geophysical and core data, documenting particularly the continental slope offshore Uruguay to be locus of frequent submarine landslides. Apart from individual landslides, however, gravitational downslope sediment transport along the continental slope is restricted to the prominent Mar del Plata Canyon and possibly to smaller canyons indentified in the bathymetric data. The location of the canyons might be controlled by tectonics. In contrast, many morphological features (e.g. progradational terraces and slope parallel scarps with scour-geometries) reveal that sediment transport is predominantly influenced/controlled by strong contour bottom currents. This suggests a significant impact of the western boundary currents on the overall architectural evolution of the margin. Future studies using the acquired geophysical, sedimentological, physical property and geochemical data will (i) quantify the relative contribution of gravitational down-slope vs. along-slope processes through time in shaping this ocean margin and how it relates to the global ocean circulation pattern and sea-level change through time, (ii) investigate depositional and post-depositional processes and how they control submarine slope stability and submarine landslide initiation and (iii) explore the interaction and relative contribution of the various processes in controlling margin evolution, sediment dynamics and geohazard off Uruguay and Northern Argentina