between risk and uncertainty is implemented by applying the Gilboa-Schmeidler maxmin with multiple priors framework to lenders …, ultimate lenders and financial intermediaries. The model is used to investigate the impact of uncertainty about the likelihood … include: (i) An unanticipated increase in bailout uncertainty raises interest rates, the volume of defaults in both the real …

This paper tests for reference dependence, using data from Impressionist and Contemporary Art auctions. We distinguish … distinguish pure reference dependence from effects due to loss aversion. Thus, we use actual market data to test essential …

uncertainty as an additive shock to a uniform consumer distribution. The additive shock restricts uncertainty to the mean of the …

In this paper, we show how an investor can incorporate uncertainty about expected returns when choosing a mean … investor is neutral to uncertainty, we consider the case where the investor has multiple priors and is averse to uncertainty … model aversion to uncertainty via a minimization over the set of priors. The multi-prior model has several attractive …

In this paper, we show how an investor can incorporate uncertainty about expected returns when choosing a mean … investor is neutral to uncertainty, we consider the case where the investor has multiple priors and is averse to uncertainty … model aversion to uncertainty via a minimization over the set of priors. The multi-prior model has several attractive …

The paper reports the result of an experimental game on asset integration and risk taking. We find evidence that … winnings in earlier rounds affect risk taking in subsequent rounds, but no evidence that real life wealth outside the … experiment affects risk taking. We find some evidence of imitation of the risk taking behavior of others that is distinct from …

We analyse bidding behaviour in auctions when risk-averse buyers bid for a good whose value is risky. We show that when … risk in the valuations increases, DARA bidders will reduce their bids by more than the appropriate increase in the risk … auctions with affiliated common (interdependent) values. This ‘precautionary bidding’ effect arises because the expected …

We endogenize the market risk (at given technical risk) in firms’ R&D decisions by introducing stochastic R&D in the … Hotelling model. It is shown that if the technical risk is sufficiently high, the market risk remains low even if firms pursue … similar projects. This leads firms to focus on the most valuable market segment. We then also endogenize technical risk by …