The distributional impact of risk heterogeneity, risk responsibility and control

In contrast to classical economics, behavioral economics accounts for individuals’ bounded rationality as well as for insights from psychology when predicting economic behavior. Plenty of empirical evidence suggests that individuals’ decisions are not solely inspired by self interest as suggested by the classical concept of homo economicus. Instead, many individuals exhibit social, or other regarding preferences. They do not only care about their own material payoffs from social and economic interactions, but they also care about the payoffs of their interaction partners.

In Chapter 2 of my thesis (joint with Arno Riedl and Jan Potters) I review experimental research that deals with individuals’ preferences for (re)distribution.

In Chapter 3 of my thesis (joint with Arno Riedl and Jan Potters) I investigate whether adverse selection hampers the effectiveness of voluntary risk sharing and how differences in risk profiles affect adverse selection.

In Chapter 4 of my thesis (joint with Elena Cettolin) I investigate the role that responsibility for risk exposure plays in a risk sharing context.

In Chapter 5 I investigate how agents’ effort provision is affected by the imposition of control.