Proper nouns .1 Titles and ranks

According to our model, the certainty equivalent for a given lottery is only implicitly defined. We therefore need to approximate it numerically. The following lines contain the receipt describing each step of the algorithm we implemented to do that.

1. Calculate the value of the lottery L, V^L, according to Equation C.1.

2. Split the outcome space [x, x] into n equally spaced partitions, where n is a large number (we took 200). Note that ˜ce(L) lies by definition between the lowest and the highest lottery outcome.

3. Calculate the value for each of the n + 1 amounts, Vce˜(L), again following Equation C.1.

4. Find the smallest and the largest amount xl and xh lying below and above indiffer-ence V^L= Vce˜(L) in the vector Vce_˜^�(L).

5. Determine the weight w representing relative distance from indifference to the x^l, i.e. w = x^l/(x^h− x^l).

6. Obtain the approximate certainty equivalent ˜ce(L) by the weighted mean ˜ce(L) = wxh+ (1 − w)xl.

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Curriculum Vitæ

Thomas Epper

Personal Details

Date of Birth: October 31, 1979 Place of Birth: Chur GR, Switzerland Citizenship: Swiss

Education

2008 Russell Sage Foundation Summer Institute in Behavioral Economics, Trento, Italy. Organizers: David Laibson, Luigi Mittone and Matthew Rabin.

2007–2009 Postgraduate Studies in Applied Statistics, ETH Zurich, Switzerland.

2006 Mannheim Empirical Research Summer School, University of Mannheim, Germany.

since 2006 Doctoral Studies in Economics, University of Zurich, Switzerland. Supervi-sors: Ernst Fehr and Ulrich Kaiser.

2000–2005 Studies in Management and Economics, University of Zurich, Switzerland.

Graduation: lic. oec. publ.

1995–1999 High School (Kantonsschule), Sargans SG, Switzerland. Graduation: Matura Type E.

Publications

06/2011 “Viewing the Future through a Warped Lens: Why Uncertainty Generates Hyperbolic Discounting,”, Journal of Risk and Uncertainty, forthcoming (with A. Bruhin and H. Fehr-Duda).

10/2010 “Risk and Rationality: The Effects of Mood and Decision Rules on Probability Weighting,” Journal of Economic Behavior and Organization, forthcoming (with A. Bruhin, H. Fehr-Duda and R. Schubert)

07/2010 “Risk and Rationality: Uncovering Heterogeneity in Probability

Distortion,” Econometrica, Vol. 78, No. 4, p.1375-1412 (with A. Bruhin and H. Fehr-Duda).

04/2010 “Rationality on the Rise: Why Relative Risk Aversion Increases with Stake Size,” Journal of Risk and Uncertainty, Vol. 40, No. 2, p.147-180 (with A.

Bruhin, H. Fehr-Duda and R. Schubert).

Working Papers

09/2010 “Preferences or Constraints? A Rational Explanation for Probability-Dependent Risk Attitudes,” mimeo.

06/2010 “Viewing the Future through a Warped Lens: Why Uncertainty Generates Hyperbolic Discounting,” IEW Working Paper, No. 510, University of Zurich (with A. Bruhin and H. Fehr-Duda).

05/2009 “Uncertainty Breeds Decreasing Impatience: The Role of Risk Preferences in Time Discounting,” IEW Working Paper, No. 412, University of Zurich (with A. Bruhin and H. Fehr-Duda).

03/2009 “Rational Planners or Myopic Fools? Liquidity Constraints, Positive Expectations and Anomalies in Intertemporal Choice,” mimeo.

08/2007 “Rationality on the Rise: Why Relative Risk Aversion Increases with Stake Size,” SOI Working Paper, No. 0708, University of Zurich (with A. Bruhin, H. Fehr-Duda and R. Schubert).

05/2007 “Risk and Rationality: Uncovering Heterogeneity in Probability

Distortion,” SOI Working Paper, No. 0705, University of Zurich (with A.

Bruhin and H. Fehr-Duda).

03/2007 “Risk and Rationality: The Effect of Incidental Mood on Probability Weighting,” SOI Working Paper, No. 0703, University of Zurich (with A.

Bruhin, H. Fehr-Duda and R. Schubert).

October 20, 2010