The flexible pattern matching approach has witnessed increasing popularity. By combining deduction with induction in logic, flexible pattern matching is well suited for exploration and theory development. The paper discusses its logic, advantages and process of this approach while offering a...

We analyze spectral risk measures with respect to comparative risk aversion following Arrow (1965) and Pratt (1964) on the one hand, and Ross (1981) on the other hand. The implications for two standard financial decision problems, namely the willingness to pay for insurance and portfolio...

Purpose – The purpose of this research paper is to clarify why shareholders should be prudent when managers promise value gains from a synergetic merger. Design/methodology/approach – The paper proposes a simple two‐state model of stochastic firm cash flows which allows for a discussion of...