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【Theory webinar】Endogenous Risk Attitude


  • 研討會日期 : 2021-05-18
  • 時間 : 16:00
  • 主講人 : Professor Jakub Steiner
  • 地點 : online
  • 演講者簡介 : Professor Steiner received his Ph.D. in Economics from Center for Economic Research and Graduate Education – Economics Institute (CERGE-EI), Prague in 2006. He is currently an Associate Professor at CERGE-EI and University of Zurich. His research fields are Game theory and economic theory.
  • 演講摘要 : We show in a model inspired by neuroscience that optimal perception strategy encodes rewards using an s-shaped encoding function and oversamples low-probability contingencies as in Kahneman and Tversky (1979). Whether the chosen perception strategy has implications to behaviour depends on the degree of the decision-maker's understanding of risk. It has no implications whenever the DM fully understands the decision problem and perception friction vanishes. If, however, the DM underrates the complexity of the decision problem, then perception strategy induces risk-attitudes that reflects its properties even for vanishing perception friction. The model delivers risk attitudes from Prospect theory and, additionally, predicts that risk-attitudes are enlarged by time pressure and attenuated by the anticipation of large risks.