The typical portfolio theory does not distinguish investors and asset managers. Most of investments, however, are delegated to asset managers, which leads to an Agency problem. Moreover, the Agency problem faced by the investment industry is specific as the managers can manipulate the...

The aim of this paper is to make the case for a new emerging sub-field at the crossroads of Financial Economics and Geo-economics. The underlying thread is that with the development of financial markets and globalization, standard geopolitical and macroeconomic tools will become less and less...

Decision theory under uncertainty has developed two approaches to model aversion to ambiguity. The first approach is based on the multiple priors model and is known as maxmin expected utility (MEU) (Gilboa and Schmeidler) 1989). The second approach based on Schmeider (1989) models ambiguity...

The aim of this paper is to develop an approach to extract information about cyber risks from structured financial products. We consider decision makers that are interested in extracting information about the uncertainty of Cyber risks. The value of information can be evaluated using recently...

The standard portfolio approach assumes that investors maximize Expected Utility functions and that the Markowitz Mean-Variance Standard Portfolio Optimization approach can be applied. Behavioral Research, however, indicates that investors' behavior with respect to risk or uncertainty is not...

Standard portfolio theory predicts that investors should invest in diversified portfolios, whatever their risk aversion. The asset management industry, however, is characterized by a lot of differentiated investment funds advertised to investors. This is inconsistent with the predictions of...

Decision theory under uncertainty is currently dominated by two approaches to model aversion to ambiguity. The first is the 𝛼 − 𝑀𝐸𝑈 approach developed by Ghirardato et al. (2004). Within this framework, DMs face a set of probability measures and according to their ambiguity...