One of the standard predictions of the agency theory is that more incentives can be given to agents with lower risk … obtain that lower agent’s risk aversion unambiguously leads to higher incentives when the technology function linking … efficiency and riskiness is elastic, while the risk aversion–incentive relationship can be positive when this function is rigid. …

. We compare the optimal output levels of regret-averse firms with purely risk- averse firms under uncertainty and firms … under certainty. We first show that the linear-regret firms will surely produce more than their purely risk …-averse firms to produce more than the purely risk-averse counterparts and study the comparative statics of the optimal production …

Assuming a risk-neutral bank and assuming household utility to be exponential, we show how under information symmetry …

stronger distaste for low relative wealth translates into reduced relative risk aversion and, consequently, into riskier … prone to divorce exhibit risk-taking behavior that is more similar to that of single men than married men in environments …

insurance by strictly-risk averse agents and risk-neutral firms when they enjoy limited liability. When exposed to a bankrupting …

stronger distaste for low relative wealth translates into reduced relative risk aversion and, consequently, into riskier … prone to divorce exhibit risk-taking behavior that is more similar to that of single men than married men in environments …

stronger distaste for low relative wealth translates into reduced relative risk aversion and, consequently, into riskier … prone to divorce exhibit risk-taking behavior that is more similar to that of single men than married men in environments …