报告题目：Overreaction to low-probability risks
摘要：We provide the first systematic analysis of the effects of loss aversion on optimal prevention using Kőszegi and Rabin’s (2007) choice-acclimating personal equilibrium. Individuals take into account the financial consequences of prevention but also expected sensations of disappointment and elation against a stochastic reference point. Loss aversion induces an increase in prevention investments if the loss probability is below a threshold value and can thus explain overreaction to low-probability risks. We also introduce a status-quo bias into the analysis, which makes individuals more sensitive to the occurrence of loss. The status-quo bias raises the probability threshold, and thus makes the positive effect of loss aversion on prevention more likely to dominate.
报告人：Dr. Richard Peter, Associate Professor of Finance, University of Iowa.
Dr. Richard Peter obtained his PhD degree from Ludwig-Maximilians-Universitat in Munich in 2013, and continued his research career for two more years there. He then worked at the University of Iowa till now. His research interests are risk management and insurance and decision-making under risk uncertainty. His paper has been published in top journals including Operations Research, Management Science, Journal of Risk and Insurance, Journal of Economic Behavior & Organization, Economic Theory and etc.
会议号: 843 3206 5129
邀 请 人：马冰