payoffs, our model provides a novel and unified account of many empirical phenomena, including frequent risk-seeking behavior …

-range probability than is proposed by the expected utility model and risk-seeking behavior over quot;long-shotquot; odds is common …

extremely high risk aversion would achieve a higher expected utility by holding a portfolio of stocks rather than bonds …

. We show that agents who maximize a GEU exhibit first order risk aversion and tend to refrain from di- versification in … risk aversion increases the threshold of yields leading to diversification, shifting the cone of diversification upwards … given domestic yield. Ceteris paribus, greater downside risk aversion reduces the feasible hetero- geneity of normalized …

distributions of risks give rise to components of equilibrium prices that differ from the risk prices widely used in asset pricing …

stance. When decomposing the VIX into two components, a proxy for risk aversion and expected stock market volatility … ("uncertainty"), we find that a lax monetary policy decreases both risk aversion and uncertainty, with the former effect being …

We study a dynamic-contracting problem involving risk sharing between two parties -- the Proposer and the Responder … wealth in the risky asset, but they can share the underlying investment and termination risk. When the project ends they … consume their final accumulated wealth. The Proposer and the Responder have constant relative risk aversion R and r …