Most studies on the role of incentives on risk attitude report data obtained from within-subject experimental … predicted by the prospect theory. But under high stakes, we provide some evidence that risk seeking behavior is dramatically … paper reports instead between-subject results on the effect of monetary stakes on risk attitudes for small probability …

A main prediction of agency theory is the well known risk-incentive trade-off. Incentive contracts should be found in … environments with little uncertainty and for agents with low degrees of risk aversion. There is an ongoing debate in the literature … use of a unique representative data set, we find clear evidence that risk aversion has a highly significant and …

controlling parties, while a large percentage of subordinates under-provide effort despite pecuniary incentives to the contrary …