We consider the effect of an increase in the risk from pollution. We show that in the case of a flow pollution, when … the number of players is sufficiently large, the result of Bramoulle and Treich, showing that a marginal increase of risk … in the neighborhood of a risk-free world is welfare-improving, holds even when we consider non-marginal increases in risk …

-contingent consumer's surplus and the state-contingent marginal utility of wealth and a second term representing risk aversion. This … consumer's surplus is determined by the covariance between preferences and consumer's surplus and risk aversion. The sign of …. We then apply this result to the allocation of risk in the context of both public and private goods. In Section 3, we …

We develop indices of Twitter-based Chinese Climate Uncertainty (TC-CU) and Climate Policy Uncertainty (TC-CPU). Our …, among many others. We find that TC-CPU is associated with future US climate uncertainty and attention measures while US …

We introduce learning in a dynamic game of international pollution, with ecological uncertainty. We characterize and … ecological uncertainty but they gain information (learn) about it. We then compare our learning model with the benchmark model of … full information, where players know the distribution of ecological uncertainty. We find that uncertainty due to …

The paper proposes a novel way to handle the relation between decision theory and uncertainty in the context of policy … design. Present risk governance is based primarily on two institutions - insurance markets and public risk governance … - supported by a powerful theory: the expected utility approach to risk. New systemic risks like those of nuclear war, pandemics …

The paper proposes a novel way to handle the relation between decision theory and uncertainty in the context of policy … design. Present risk governance is based primarily on two institutions - insurance markets and public risk governance … - supported by a powerful theory: the expected utility approach to risk. New systemic risks like those of nuclear war, pandemics …

This paper examines how cooperation in an insurance game depends on risk preferences and the riskiness of income. It … of the discount factor above which perfect risk sharing is self-enforcing. When agents face no aggregate risk, there is … of idiosyncratic and aggregate risk. In the case of exponential (isoelastic) utility, cooperation depends positively on …

We examine how policy uncertainty affects firm innovation and competitive dynamism. In R&D races, the gap in the rate … investment from policy uncertainty present an opportune window for laggards to challenge and overtake leaders. We present … evidence that policy uncertainty increases the rate of innovation by laggards relative to leaders and accelerates upward …

analyzes a game between economic agents facing uncertainty and maximizing discounted utility without enforceable contracts or …

often impossible to locate an actual threshold with certainty. If individuals are risk averse, the economic literature holds … that the presence of such uncertainty can have a positive impact by lowering incentives to over-consume. We point out that … representation of uncertainty is a discrete or multimodal distribution. Using a variant of the Nash demand game where the maximal …