introduced in Dhillon and Dhillon and Mertens, normalizes all agents' utility functions so that the lowest value is 0 and the … highest value is 1, and then adds up the utility functions. Our three axioms are closely related to axioms that Dhillon and …

of the Jaffray-Phillipe sub-class of Choquet Expected Utility preferences. We find conditions for ambiguity-attitude to …

We investigate how individual risk preferences affect the likelihood of selecting the more able contestant within a two …-player Tullock contest. Our theoretical model yields two main predictions: First, an increase in the risk aversion of a player … less able but less risk averse contestant can achieve an equal or even higher probability of winning than a more able but …

empirically show two main findings: first, risk-taking is positively related to the length of tax loss periods because the loss … rules shift some risk to the government; and second, the tax rate has a positive effect on risk-taking for firms that expect …

characterize this heterogeneity with finite-mixture estimates of a one-parameter extension of Expected Utility Theory wherein 48 … risk preferences. Here, we develop an analogous tool for choice under uncertainty – the ambiguity triangle – and show that …

The paper reexamines the welfare economics of intergenerational risk. Risk and its resolution over time are modeled as … preferences to (i) disentangle aversion to intergenerational inequality from aversion to risk, (ii) exhibit a preference for early … resolution of risk, (iii) show different discounting formulas depending on the magnitude of risk and on the timing of its …

literature that, when there is (only) risk type uncertainty, the optimal GR contract with renewal price set at the actuarially … fair price for low risk types provides full insurance against reclassification risk. We develop a model that includes … unpredictable (and unobservable) fluctuations in demand for life insurance as well as changes in risk type (observable) over …

This paper reports survey evidence on long-term care (LTC) risk misperceptions and demand for long-term care insurance … (LTCI) in Canada. LTC risk misperceptions is divided into three different risks: needing help for at least one activity of …. We then study how risk misperceptions correlate with individual characteristics, and evaluate how misperceptions affect …

This paper provides the first theoretical and empirical analysis of how taxation shapes the joint allocation of risk … risk to high-tax countries to maximize risk sharing with governments and all their profits to low-tax countries to minimize … expected tax payments. However, transfer pricing rules requiring risk to be compensated with a higher expected return introduce …