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Incentives and Risks in Relationships Between the Principal and the Agent
Minasyan, Vigen - Volkswirtschaftliche Fakultät, … - 2014
The paper addresses a basic model of moral hazard (risk) [Gibbons, 2010; Gibbons, 2005] and suggests some of its modifications. In the basic model of moral risk, questions are put and examined that have not been considered in the previous researches. In particular, it is proved that the level of...
Persistent link: https://www.econbiz.de/10011123517
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A Quantum-Conceptual Explanation of Violations of Expected Utility in Economics
Aerts, Diederik; Broekaert, Jan; Czachor, Marek; … - Volkswirtschaftliche Fakultät, … - 2011
The expected utility hypothesis is one of the building blocks of classical economic theory and founded on Savage's Sure … presence of the 'disjunction effect'' of decision theory and use our earlier study of this effect in concept theory to put …
Persistent link: https://www.econbiz.de/10011107454
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Are small groups expected utility?
Morone, Andrea; Morone, Piergiuseppe - Volkswirtschaftliche Fakultät, … - 2012
. Specifically, we intend to assess if there exists a risky choice theory that statistically fits group decisions significantly …
Persistent link: https://www.econbiz.de/10011108949
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A Theoretical Assessment on Optimal Asset Allocations in Insurance Industry
Jarraya, Bilel; Bouri, Abdelfettah - Volkswirtschaftliche Fakultät, … - 2013
In recent years the financial markets known a rapid development and become more and more complex. So, many regulatory requirements, focused on banks as well as insurance sector, have been developed. These regulatory are concentrated essentially on business risk control and required capital to...
Persistent link: https://www.econbiz.de/10011110361
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Optimal Use of Put Options in a Stock Portfolio
Peter N, Bell - Volkswirtschaftliche Fakultät, … - 2014
In this paper I consider a portfolio optimization problem where an agent holds an endowment of stock and is allowed to buy some quantity of a put option on the stock. This basic question (how much insurance to buy?) has been addressed in insurance economics through the literature on rational...
Persistent link: https://www.econbiz.de/10011114281
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Corporate Management of Highly Dynamic Risks: The Case of Terrorism Insurance in Germany
Thomann, Christian; Pascalau, Razvan; Schulenburg, … - Volkswirtschaftliche Fakultät, … - 2007
This article extends the theory of corporate risk management to encompass highly dynamic risks. Taking Viscusi'�s (1989 …) prospective reference from the context of individual decision making and applying it to a corporate context we propose a theory of …
Persistent link: https://www.econbiz.de/10005789691
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Solving Daniel Bernoulli's St Petersburg Paradox: The Paradox which is not and never was
Vivian, Robert William - Volkswirtschaftliche Fakultät, … - 2003
It has been accepted for over 270 years that the expected monetary value (EMV)of the St Petersburg game is infinite. Accepting this leads to a paradox; no reasonable person is prepared to pay the predicted large sum to play the game but will only pay, comparatively speaking, a very moderate...
Persistent link: https://www.econbiz.de/10005790291
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On Non-binary Personal Preferences in Society, Economic Theory and Racial Discrimination
Naqvi, Nadeem - Volkswirtschaftliche Fakultät, … - 2010
This paper examines some of the consequences for economic theory of the replacement of binary personal preferences by … both much damage to existing theory and greater opportunity for providing formal explanations of such phenomena as … economic theory that is founded on a choice theory that is based exclusively on binary relational personal preferences. …
Persistent link: https://www.econbiz.de/10008529321
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EL USO DE SISTEMAS DINÁMICOS ESTOCÁSTICOS EN LA TEORÍA DE JUEGOS Y LA ECONOMÍA
Serrano, Roberto - Centro de Estudios Monetarios y Financieros (CEMFI) - 2007
Este breve artículo glosa algunas de las aplicaciones recientes de sistemas dinámicos estocásticos de la Teoría de Juegos y la Economía. El modelo que se describe con más detalle demuestra que la única asignación estocásticamente estable de un proceso de intercambio entre coaliciones...
Persistent link: https://www.econbiz.de/10005611902
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AN ECONOMIC INDEX OF RISKINESS
Serrano, Roberto; Aumann, Robert J. - Centro de Estudios Monetarios y Financieros (CEMFI) - 2007
Define the riskiness of a gamble as the reciprocal of the absolute risk aversion (ARA) of an individual with constant ARA who is indifferent between taking and not taking that gamble. We characterize this index by axioms, chief among them a “duality” axiom which, roughly speaking, asserts...
Persistent link: https://www.econbiz.de/10005264553