with bounded rationality, uninsured idiosyncratic risk, and redistributive effects of transfers. Finally, I use these …

We consider economic obstacles that limit the reliability and accuracy of value-at-risk (VaR). Investors who manage …

violated expected utility theory. Ross (1999) and others presented examples where expected utility maximizers would accept …

The relationship between decision-making and risk carries significant implications, particularly within the context of … frameworks are not sufficiently predictive or comprehensive. Recognizing the foundational elements of risk is crucial for problem … the risk-taking behaviors of these banks. We specifically examined the behaviors both before (ex-ante) and after (ex …

This study explores how people learn and adapt their risk preferences using different elicitation methods, challenging … the neoclassical theory that suggests preferences are fixed. Instead, we show that preferences can change. However, we aim … to explain whether the observed changes are due to a real change in the measure, i.e. individuals' risk preferences, or …

view trade in goods as implicit exports/imports of risk and risk aversion. Specifically, we show that a relatively “risk …-aversion abundant” country is more likely to be a net importer of the product – hence an importer of low risk-aversion. Similarly, a … “relatively high-risk abundant” country is more likely to be the net exporter of the product - hence an importer of low risk. We …

Environmental risk (ER) has become increasingly crucial in international business, and firms endeavor to integrate … environmental risk management (ERM) into business strategies. Examining a sample of cross-border mergers and acquisitions (M&As) and …

Bounded cardinal utility theory (BCUT), built on the seminal work of Van Praag (1968), is based on three axioms. • The … (additive). Walasek et al (2024) point out that ‘there was never a clear psychological theory about the causes of loss aversion …’s endowments are less than subsistence, and the theory predicts that (decreasing) loss aversion occurs only if the individual …