We consider optimal investment behavior for a firm facing both technological and economic uncertainty, in the context of a research project with unpredictable outcomes. The optimal investment strategy, in the form of a pair of trigger points for investment and abandonment, is derived. As in...

We prove an integral representation theorem for functionals fulfilling some continuity conditions. These functionals satisfy a weaker condition than additivity, namely additive comonotonicity and do not need to be monotonic.

This paper seeks to offer new insights into the behavioral origins of the 'favourite-longshot' bias- an established feature of betting markets, whereby longshots win less often than the subjective probabilities imply and favourites more often. This study analyses a new data source which offers...

To end a life in suicide is a tragic and irreversible event, and a multiple of causes can lead to the fatal decision to commit suicide. But can legalized gambling be singled out as a primary, if not even determinant, cause for suicides in gaming markets?.

How does risk aversion affect choices when expenses improve probabilities? Attempts to answer this question in the literature found an endogenous switching probability. In this paper we introduce a new concept of comparative attitude to risl, namely proper risk behavior and determine 1/2 as the...

A long-standing conjecture is that winner-take-all games such as patent races lead to the survival of risk-takers and the extinction of risk-averters. In many species a winner-take-all game determines the males' right to reproduce, and the same argument suggests that males will evolve to be...

To end a life in suicide is a tragic and irreversible event, and a multiple of causes can lead to the fatal decision to commit suicide. But can legalized gambling be singled out as a primary, if not even determinant, cause for suicides in gaming markets?.