Nicolas Treich

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This article illustrates how the joint elicitation of subjective probabilities and preferences may help understand behavior in games. We conduct an experiment to test whether biased probabilistic beliefs may explain overbidding in first-price auctions. The experimental outcomes indicate that subjects underestimate their probability of winning the auction,(More)
CIRANO Le CIRANO est un organisme sans but lucratif constitué en vertu de la Loi des compagnies du Québec. Le financement de son infrastructure et de ses activités de recherche provient des cotisations de ses organisations-membres, d'une subvention d'infrastructure du Ministère du Développement économique et régional et de la Recherche, de même que des(More)
Environmental issues provide a rich ground for identifying the existence and consequences of human limitations. In this paper, we present a growing literature lying at the interface between behavioral and environmental economics. This literature identifies alternative solutions to traditional economic instruments in environmental domains that often work(More)
We present how uncertainty and learning are classically studied in economic models. Specifically, we study a standard expected utility model with two sequential decisions, and consider two particular cases of this model to illustrate how uncertainty and learning may affect climate policy. While uncertainty has generally a negative effect on welfare,(More)
2 Theoretical Insights 4 2.1 The VSL model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.1.1 The standard model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.1.2 The dead-anyway effect and the wealth effect . . . . . . . . . . . . . . . . . . . . . 5 2.1.3 Risk aversion and background(More)
This paper offers interpretative properties of the “fear of ruin” coefficient u/u0 (Aumann and Kurz, 1977, Econometrica). This coefficient controls the behavior of expected utility maximizers towards the risk of losing their entire wealth. It is shown that this coefficient also captures risk-aversion motives in first-price auctions model. Equivalent(More)