Purpose – Conventional measures of risk aversion based on first and second derivatives of utility are strictly local instruments, valid only for infinitesimally small changes in wealth. This paper to develop a global index suitable for assessing attitudes toward large-scale risks....

Purpose – Seeks to analyze the role of population and wealth in determining capital movements between countries. Design/methodology/approach – By applying the Clark-Jokung 50 percent portfolio theorem, considers the specific case of a two country world where the cumulative conditional...

Purpose – The purpose of this paper is threefold: conceptually, to demonstrate that ethical behavior is rational; theoretically, to illustrate that conscience can be readily incorporated into an expected utility framework; and empirically, to investigate whether conscience is an effective and...

There exists no completely satisfactory theory of risk attitude in current normative decision theories. Existing notions confound attitudes to pure risk with unrelated psychological factors such as strength of preference for certain outcomes, and probability weighting. In addition traditional...

In binary choice between discrete outcome lotteries, an individual may prefer lottery L <Subscript>1</Subscript> to lottery L <Subscript>2</Subscript> when the probability that L <Subscript>1</Subscript> delivers a better outcome than L <Subscript>2</Subscript> is higher than the probability that L <Subscript>2</Subscript> delivers a better outcome than L <Subscript>1</Subscript>. Such a preference can be rationalized by three...</subscript></subscript></subscript></subscript></subscript></subscript>

Purpose – The purpose of this paper is threefold: conceptually, to demonstrate that ethical behavior is rational; theoretically, to illustrate that conscience can be readily incorporated into an expected utility framework; and empirically, to investigate whether conscience is an effective and...