The September 11, 2001 terrorism attack on the United States has led government officials to rethink anti-terrorism policies and researchers to assess the implications for the study of risk and uncertainty. This book draws on the expertise of eminent researchers in several risk-related fields to...

This paper explores two axiomatic structures of subjective expected utility assuming a finite state-space and state-dependent, connected, topological outcome-spaces. Building on the work of Karni and Schmeidler (1981) the analytical framework includes, in addition to the preference relation on...

This paper examines the reaction of the stock prices of U.S. property-casualty insurers to the World Trade Center (WTC) terrorist attack of September 11, 2001. Theories of insurance market equilibrium and theories of long-term contracting predict that large loss events which deplete capital and...

This note shows that, under appropriate conditions, preferences may be locally approximated by the linear utility or risk-neutral preference functional associated with a local probability transformation. Copyright 2003 by Kluwer Academic Publishers

Our research examines risk compensation by gender and race using occupation, gender, and race specific fatal and nonfatal injury rates and a data set sufficiently large to produce accurate estimates across fairly narrow groups. The data provide strong evidence that men earn compensating...