An experimental methodology testing for prudence and third-order preferences

We propose an experimental method to test individuals for prudence (i.e. downside risk aversion) outside the expected utility framework. Our method relies on a novel representation of compound lotteries which allows for a systematic parameterization that captures the full generality of prudence. Therefore, we develop a general technique for lottery calibration in experiments. Since we investigate a very subtle third-order property we test our method in the laboratory employing a factorial design. We find that it yields robust results and that prudence is observed on the aggregate as well as on the individual level. Further we show that preferences based on statistical moments, in particular skewness seeking, can at most approximately explain individuals' behavior in the experiment.Decision making under uncertainty, risk preferences, prudence, downside risk, statistical moments, laboratory experiment

Coos county teens’ family relationships

This fact sheet examines Coos County, New Hampshire teens’ perceptions of their family relationship experiences using data from the Coos Youth Study collected in 2011 from 418 eleventh graders in all Coos County public schools. Authors Corinna Jenkins Tucker and Desiree Wiesen-Martin report that Coos older adolescents feel close to their parents and siblings but also argue with them. A small group of youths report perpetrating violence on a family member

How Payment Systems Affect Physicians' Provision Behaviour – An Experimental Investigation

Understanding how physicians respond to incentives from payment schemes is a central concern in health economics research. We introduce a controlled laboratory experiment to analyse the influence of incentives from fee-for-service and capitation payments on physicians’ supply of medical services. In our experiment, physicians choose quantities of medical services for patients with different states of health. We find that physicians provide significantly more services under fee-for-service than under capitation. Patients are overserved under fee-forservice and underserved under capitation. However, payment incentives are not the only motivation for physicians’ quantity choices, as patients’ health benefits are of considerable importance as well. We find that patients in need of a high (low) level of medical services receive a larger health benefit under fee-for-service (capitation).Physician payment system; laboratory experiment; incentives; fee-for-service; capitation

On a phenomenological generalized Boltzmann equation

In this paper we prove existence and uniqueness of the solution for a generalized Boltzmann equation and we discuss the positivity of this solution. We will give two series representations of the solution of our equation

Joint measurement of risk aversion, prudence and temperance

We propose a method to measure the intensity of risk aversion, prudence (downside risk aversion) and temperance (outer risk aversion) in experiments. Higher-order risk compensations are defined within the proper risk apportionment model of Eeckhoudt and Schlesinger [American Economic Review, 96 (2006) 280] that are elicited using a multiple price list format. This approach is not based on expected utility theory. In our experiment we find evidence for risk aversion, prudence and temperance. Women demand higher risk compensations for all orders. The highest compensation is demanded for taking downside risk, not for being (second order) risk-loving. This highlights the importance of prudence when considering economic decisions under risk

Technical Note: Quantification of interferences of wet chemical HONO LOPAP measurements under simulated polar conditions

In the present pilot study, an optimized LOPAP instrument (LOng Path Absorption Photometer) for the detection of nitrous acid (HONO) in the atmosphere (DL 0.2 pptV) was tested at the high alpine research station Jungfraujoch at 3580 m altitude in the Swiss Alps under conditions comparable to polar regions. HONO concentrations in the range <0.5–50 pptV with an average of 7.5 pptV were observed at the Jungfraujoch. The diurnal profiles obtained exhibited clear maxima at noon and minima with very low concentration during the night supporting the proposed photochemical production of HONO. In good agreement with recent measurements at the South Pole, it was demonstrated, that interferences of chemical HONO instruments can significantly influence the measurements and lead to considerable overestimations, especially for low pollution level. Accordingly, the active correction of interferences is of paramount importance for the determination of reliable HONO data