IDEAS home Printed from https://ideas.repec.org/p/zbw/sfb373/200025.html
   My bibliography  Save this paper

Neighborhoods as nuisance parameters? Robustness vs. semiparametrics

Author

Listed:
  • Rieder, Helmut

Abstract

We analyze the impact of an individual's tendency to worry on willingness to pay (WTP) for a protective measure. We report on the results of a controlled experiment with real objects at stake. Worry was measured with the Worry Domains Questionnaire, an instrument determining an individual's tendency to (non-pathological) worry. Although the loss probability was relatively high and exactly specified, we find that the tendency to worry has in general a positive effect on WTP for protective measures. However when the objects at stake are given to our respondents, high worriers significantly reduce their WTP for protection whereas low worriers are unaffected. We call this tendency of high worriers a safety illusion and relate it to findings on automatic self- regulation, transitional objects in childhood, and studies on the illusion of control. High worriers appear to make more use of all these mechanisms than low worriers because they have more experience in easing their anxiety.

Suggested Citation

  • Rieder, Helmut, 2000. "Neighborhoods as nuisance parameters? Robustness vs. semiparametrics," SFB 373 Discussion Papers 2000,25, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    • Handle: RePEc:zbw:sfb373:200025
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/62174/1/723747504.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Helmut Rieder & Matthias Kohl & Peter Ruckdeschel, 2008. "The cost of not knowing the radius," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 17(1), pages 13-40, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:sfb373:200025. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/sfhubde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.