We elicit subjects' willingness to pay to reduce future risk. In our experiments, subjects are given a cash endowment and a risky lottery. They report their willingness to pay to exchange the risky lottery for a safe one. Subjects play the lottery either immediately, eight weeks later, or...

In this experimental study we examine behavior relating to voluntary contributions to reduce expected losses associated, for example, with the occurrence of natural disasters or major industrial accidents. We ask subjects to allocate tokens between a private investment and a public investment....

The incentive mechanisms used in the financial services industry in particular, but also in many other contexts, reward income generated almost regardless of risk, with negligent and faulty risk measurement and unjustified risk taking as predictable results. A number of economists warned...

We consider the effect of an increase in the risk from pollution. We show that in the case of a flow pollution, when the number of players is sufficiently large, the result of Bramoulle and Treich, showing that a marginal increase of risk in the neighborhood of a risk-free world is...

Measuring and managing the risk associated with any decision has become an inescapable element of the decision-making process in organizations, whether public or private. Risk management is a central preoccupation of CIRANO and a recent initiative in that area directly addresses risks associated...

This study examines a group of SMEs operating in the same industrial sector but with policies, strategies, and practices that differ significantly. An integrated framework is presented whose predictor variables comprise the Strategic Orientations of Business Enterprise (STROBE), structural...

This paper distinguishes relative risk aversion and resistance to intertemporal substitution in climate risk modeling. Stochastic recursive preferences are introduced in a stylized numeric climate-economy model using preliminary IPCC 1998 scenarios. It shows that higher risk aversion increases...

In this report, we first develop a simplified example that illustrates the importance of considering the option ``waiting to invest'' when valuing an investment. This is followed by a short description of other options that could be embedded in an investment opportunity. In order to stress the...

This document deals with business processes performed by two or more trade partners. Companies expect many benefits from the integration of such processes: cost reduction, better access to their customers and suppliers, and even more flexible types of interactions. However, the integration of...

This text presents ten Quebec examples on green profitability. Managers concerned with the quality of the environment may find new ideas and arguments to convince their colleagues in being proactive in this matter. However, before presenting these examples, we must put the issue in a more...