Professor Morten Lau's Outputs (58)

Constant Discounting, Temporal Instability and Dynamic Inconsistency in Denmark: A Longitudinal Field Experiment (2024)
Journal Article
Harrison, G. W., Lau, M. I., & Yoo, H. I. (online). Constant Discounting, Temporal Instability and Dynamic Inconsistency in Denmark: A Longitudinal Field Experiment. International Economic Review, https://doi.org/10.1111/iere.12729

Claims that individuals have dynamically inconsistent preferences are usually made by studying individual discount rates over different time delays, but where those discount rates are elicited at a single point in time. However, to test dynamic incon... Read More about Constant Discounting, Temporal Instability and Dynamic Inconsistency in Denmark: A Longitudinal Field Experiment.

The Risk of Gambling Problems in the General Population: A Reconsideration (2019)
Journal Article
Harrison, G., Lau, M., & Ross, D. (2020). The Risk of Gambling Problems in the General Population: A Reconsideration. Journal of Gambling Studies, 36(3), 1133-1159. https://doi.org/10.1007/s10899-019-09897-2

We examine the manner in which the population prevalence of disordered gambling has usually been estimated, on the basis of surveys that suffer from a potential sample selection bias. General population surveys screen respondents using seemingly inno... Read More about The Risk of Gambling Problems in the General Population: A Reconsideration.

Temporal Stability of Cumulative Prospect Theory (2019)
Book Chapter
Lau, M., Yoo, H., & Zhao, H. Temporal Stability of Cumulative Prospect Theory. In G. Harrison, & D. Ross (Eds.), Models of Risk Preferences: Descriptive and Normative Challenges. Emerald. Manuscript submitted for publication

Risk Attitudes, Sample Selection and Attrition in a Longitudinal Field Experiment (2019)
Journal Article
Harrison, G., Lau, M., & Yoo, H. (2020). Risk Attitudes, Sample Selection and Attrition in a Longitudinal Field Experiment. The Review of Economics and Statistics, 102(3), 552-568. https://doi.org/10.1162/rest_a_00845

We evaluate the temporal stability of risk preferences using a remarkable data set that combines socio-demographic information from the Danish Civil Registry with information on risk attitudes from a longitudinal field experiment. Our econometric mod... Read More about Risk Attitudes, Sample Selection and Attrition in a Longitudinal Field Experiment.

Multiattribute Utility Theory, Intertemporal Utility and Correlation Aversion (2018)
Journal Article
Andersen, S., Harrison, G., Lau, M., & Rutström, E. (2018). Multiattribute Utility Theory, Intertemporal Utility and Correlation Aversion. International Economic Review, 59(2), 537-555. https://doi.org/10.1111/iere.12279

Convenient assumptions about qualitative properties of the intertemporal utility function have generated counter-intuitive implications for the relationship between atemporal risk aversion and the intertemporal elasticity of substitution. If the inte... Read More about Multiattribute Utility Theory, Intertemporal Utility and Correlation Aversion.

Asset Integration and Attitudes Toward Risk: Theory and Evidence (2018)
Journal Article
Andersen, S., Cox, J. C., Harrison, G. W., Lau, M. I., Rutström, E., & Sadiraj, V. (2018). Asset Integration and Attitudes Toward Risk: Theory and Evidence. The Review of Economics and Statistics, 100(5), 816-830. https://doi.org/10.1162/rest_a_00719

We provide evidence that choices over small stakes bets are consistent with assumptions of some payoff calibration paradoxes. We then exploit the existence of detailed information on individual wealth of our experimental subjects in Denmark, and dire... Read More about Asset Integration and Attitudes Toward Risk: Theory and Evidence.

Small Stakes Risk Aversion in the Laboratory: A Reconsideration (2017)
Journal Article
Harrison, G., Lau, M., Ross, D., & Swarthout, J. (2017). Small Stakes Risk Aversion in the Laboratory: A Reconsideration. Economics Letters, 160, 24-28. https://doi.org/10.1016/j.econlet.2017.08.003

Evidence of risk aversion in laboratory settings over small stakes leads to a priori implausible levels of risk aversion over large stakes under certain assumptions. One core assumption in statements of this calibration puzzle is that small-stakes ri... Read More about Small Stakes Risk Aversion in the Laboratory: A Reconsideration.

Disordered Gambling Prevalence: Methodological Innovations in a General Danish Population Survey (2017)
Journal Article
Harrison, G., Jessen, L., Lau, M., & Ross, D. (2018). Disordered Gambling Prevalence: Methodological Innovations in a General Danish Population Survey. Journal of Gambling Studies, 34(1), 225-253. https://doi.org/10.1007/s10899-017-9707-1

We study Danish adult gambling behavior with an emphasis on discovering patterns relevant to public health forecasting and economic welfare assessment of policy. Methodological innovations include measurement of formative in addition to reflective co... Read More about Disordered Gambling Prevalence: Methodological Innovations in a General Danish Population Survey.

Information Characteristics and Errors in Expectations: Experimental Evidence (2017)
Journal Article
Antoniou, C., Harrison, G., Lau, M., & Read, D. (2017). Information Characteristics and Errors in Expectations: Experimental Evidence. Journal of Financial and Quantitative Analysis, 52(2), 737-750. https://doi.org/10.1017/s0022109017000035

We design an experiment to test the hypothesis that, in violation of Bayes’ rule, some people respond more forcefully to the strength of information than to its weight. We provide incentives to motivate effort, use naturally occurring information, an... Read More about Information Characteristics and Errors in Expectations: Experimental Evidence.

Risk attitudes, sample selection and attrition in a longitudinal field experiment (2017)
Preprint / Working Paper
Harrison, G. W., Lau, M., & Yoo, H. I. Risk attitudes, sample selection and attrition in a longitudinal field experiment

Longitudinal experiments allow one to evaluate the temporal stability of latent preferences, but raise concerns about sample selection and attrition that may confound inferences about temporal stability. We evaluate the hypothesis of temporal stabili... Read More about Risk attitudes, sample selection and attrition in a longitudinal field experiment.

Theory, Experimental Design and Econometrics Are Complementary. (2015)
Book Chapter
Harrison, G., Lau, M., & Rutström, E. (2015). Theory, Experimental Design and Econometrics Are Complementary. In G. Frechette, & A. Schotter (Eds.), Handbook of Experimental Economic Methodology. Oxford University Press

Subjective Belief Distributions and the Characterization of Economic Literacy (2015)
Journal Article
Girolamo, A., Harrison, G., Lau, M., & Swarthout, J. (2015). Subjective Belief Distributions and the Characterization of Economic Literacy. Journal of Behavioral and Experimental Economics, 59, 1-12. https://doi.org/10.1016/j.socec.2015.08.004

We characterize the literacy of an individual in a domain by their elicited subjective belief distribution over the possible responses to a question posed in that domain. By eliciting the distribution, rather than just the answers to true/false or mu... Read More about Subjective Belief Distributions and the Characterization of Economic Literacy.

Subjective bayesian beliefs (2015)
Journal Article
Antoniou, C., Harrison, G., Lau, M., & Read, D. (2015). Subjective bayesian beliefs. Journal of Risk and Uncertainty, 50(1), 35-54. https://doi.org/10.1007/s11166-015-9208-5

A large literature suggests that many individuals do not apply Bayes’ Rule when making decisions that depend on them correctly pooling prior information and sample data. We replicate and extend a classic experimental study of Bayesian updating from p... Read More about Subjective bayesian beliefs.

Estimation af risikoaversion of diskonteringsrater. (2014)
Report
Lau, M. (2014). Estimation af risikoaversion of diskonteringsrater. [No known commissioning body]

Preface (2014)
Journal Article
Lau, M., Neugebauer, T., & Schmidt, U. (2014). Preface. Theory and Decision, 77(3), 287-290. https://doi.org/10.1007/s11238-014-9459-7

John Dennis Hey was born on 26 September 1944 and is a Professor of Economics and Statistics and Director of the Centre for Experimental Economics (EXEC) at the University of York . Between 1997 and 2011, he held a dual appointment as Professore Ordi... Read More about Preface.

Risk and Time Preferences of Entrepreneurs (2014)
Journal Article
Andersen, S., Di Girolamo, A., Harrison, G., & Lau, M. (2014). Risk and Time Preferences of Entrepreneurs. Theory and Decision, 77(3), 341-357. https://doi.org/10.1007/s11238-014-9446-z

To understand how small business entrepreneurs respond to government policy one has to know their risk and time preferences. Are they risk averse, or have high discount rates, such that they are hard to motivate? We have conducted a set of field expe... Read More about Risk and Time Preferences of Entrepreneurs.

Discounting Behavior: A Reconsideration (2014)
Journal Article
Andersen, S., Harrison, G., Lau, M., & Rutström, E. (2014). Discounting Behavior: A Reconsideration. European Economic Review, 71, 15-33. https://doi.org/10.1016/j.euroecorev.2014.06.009

We re-evaluate the theory, experimental design and econometrics behind claims that individuals exhibit non-constant discounting behavior. Theory points to the importance of controlling for the non-linearity of the utility function of individuals, sin... Read More about Discounting Behavior: A Reconsideration.

Bayes Rule, Decision Heuristics and Revealed Preference. (2013)
Other
Antoniou, C., Harrison, G., Lau, M., & Read, D. (2013). Bayes Rule, Decision Heuristics and Revealed Preference

Discounting Behaviour and the Magnitude Effect: Evidence from a Field Experiment in Denmark (2013)
Journal Article
Andersen, S., Harrison, G., Lau, M., & Rutström, E. (2013). Discounting Behaviour and the Magnitude Effect: Evidence from a Field Experiment in Denmark. Economica, 80(320), 670-697. https://doi.org/10.1111/ecca.12028

We evaluate the claim that individuals exhibit a magnitude effect in their discounting behaviour, where higher discount rates are inferred from choices made with lower principals, all else being equal. If the magnitude effect is quantitatively signif... Read More about Discounting Behaviour and the Magnitude Effect: Evidence from a Field Experiment in Denmark.

Willingness to pay for insurance in Denmark (2013)
Journal Article
Hansen, J., Jacobsen, R., & Lau, M. (2016). Willingness to pay for insurance in Denmark. Journal of Risk and Insurance, 83(1), 49-76. https://doi.org/10.1111/j.1539-6975.2013.12011.x

We estimate how much Danish households are willing to pay for auto, home, and house insurance. We use a unique combination of claims data from a large Danish insurance company, measures of individual risk attitudes and discount rates from a field exp... Read More about Willingness to pay for insurance in Denmark.