Walls, Michael R.; Dyer, James S. - In: Management Science 42 (1996) 7, pp. 1004-1021
This paper explores the differences in observed risk propensity among petroleum firms and their impact on firm performance. In this work, we (1) develop a decision theoretic model which measures a firm's risk propensity in the form of an "implied" utility function; (2) investigate changes in...