uninsured capital income risk, and suffer from an information-processing capacity constraint. For given attention devoted to … capital income risk, we solve for the optimal consumption-saving choices and show that the expected welfare is increasing with … capacity, assuming a relative risk aversion degree larger than unity. Furthermore, we solve for attention choice and find that …

We show how optimal saving in a two-period model is affected when prudence and risk aversion of the underlying utility … and the pure time discount rate, there is distributional neutrality between the two periods. Otherwise, changes of risk …

Consider a simple two-state risk with equal probabilities for the two states. In particular, assume that the random … way, we can extend and generalize existing results about risk attitudes. This lottery preference includes behavior … exhibiting higher order risk effects, such as precautionary effects and tempering effects. …

assumption of (intertemporal) risk neutrality reduces the growth effect in social discounting and significantly amplifies the … importance of risk and correlation. Second, debate and models largely overlook the difference in attitude with respect to risk … and with respect to non-risk uncertainty. The paper derives the resulting changes of the risk-free and the stochastic …

pattern of risk attitudes described by Kahneman and Tversky. In addition, we document a systematic effect of stake sizes on … the magnitude and sign of the relative risk premium, holding fixed both the probability that a lottery pays off and the … in which all departures from risk-neutral bidding are attributed to an optimal adaptation of bidding behaviour to the …

Using the new macro data on risk aversion and patience by Falk et al. (2018), I show that risk aversion and patience … are related to intelligence: high-IQ populations are more patient and more risk averse than low-IQ populations. The … patient because they have long time horizons. The correlation between risk aversion and intelligence supports new micro data …

We propose a new measure of deviations from expected utility, given data on economic choices under risk and uncertainty …

, but are, at best, weakly correlated. Third, WTA and WTP strongly relate to other aspects of risk preferences. The …