Now showing items 1-5 of 5
Add-On Pricing in Retail Financial Markets and the Fallacies of Consumer Education
We analyze the consequences of consumer education on prices and welfare in retail financial markets when some consumers are naive about shrouded addon prices and banks try to exploit this. Allowing for different information ...
Endogenous Grids in Higher Dimensions: Delaunay Interpolation and Hybrid Methods
This paper investigates extensions of the method of endogenous gridpoints (ENDGM) introduced by Carroll (2006) to higher dimensions with more than one continuous endogenous state variable. We compare three different ...
Taming Models of Prospect Theory in the Wild? Estimation of Vlcek and Hens (2011)
Shortcomings revealed by experimental and theoretical researchers such as Allais (1953), Rabin (2000) and Rabin and Thaler (2001) that put the classical expected utility paradigm von Neumann and Morgenstern (1947) into ...
Putting the Pension Back in 401(k) Plans: Optimal versus Default Longevity Income Annuities
Most defined contribution pension plans pay benefits as lump sums, yet the US Treasury has recently encouraged firms to protect retirees from outliving their assets by converting a portion of their plan balances into ...
Older People’s Willingness to Delay Social Security Claiming
We designed and fielded an experimental module in the 2014 HRS which seeks to measure older persons’ willingness to voluntarily defer claiming of Social Security benefits. In addition we evaluate the stated willingness of ...