Risk aversion in game theory is usually modeled using expected utility, which was criticized early on, leading to an extensive literature on generalized expected utility. In this paper we are the first to apply μ-σ theory to the analysis of (static) games. μ-σ theory is widely accepted in...

We examine whether low self-esteem increases the risk of obesity in a panel of Australian adults. To address the problem of endogeneity, we look at weight changes following exogenous shocks to self-esteem, such as the unexpected death of friends and family members. We find that negative shocks...