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

Many decisions under risk involve alternatives with multiple and possibly non-financial attributes. In this paper, we … characterize risk apportionment preferences in a bivariate setting. We distinguish between desirable and undesirable attributes and … show how to adapt the theory to obtain consistent results. We extend the definitions of correlation aversion, cross …

investigating known-risk gambles and ambiguous gambles have systematically used the urn context. Little systematic research has … situations with and without an insurance context: a risky situation (the probability of loss is known), an uncertain situation … (there is no prior information on the probability of loss) or an ambiguous (the information provided is vague) …

This study proposes a new “two-factor” risk preference metric and assesses its effectiveness in predicting financial … satisfaction under two risk domains: investment market risk and credit card risk. The factors in our two-factor assessment are risk … tolerance and financial self-efficacy (FSE), both of which have other theoretical and empirical support as measures of risk …

sensitivity to both gain and loss values in their decision. Further analyses show that specifically participants with higher …

We study the representative consumer's risk attitude and efficient risk-sharing rules in a single-period, single …-good economy in which consumers have homogeneous probabilistic beliefs but heterogeneous risk attitudes. We prove that if all … consumers have convex absolute risk tolerance, so must the representative consumer. We also identify a relationship between the …

The existence of state-dependent indivisible consumption opportunities influences a person's risk attitudes. In general …, people are not risk averse anymore, even if utility from divisible consumption is concave, because indivisibilities result in …-dependent preferences and investigate the different motives underlying insurance demand. The very reasons that make people not risk …

: financial risk and environmental risk. The analysis is carried out using time series data for six advanced economies in the … period 1965-2007. The results support the theoretical conclusions that both financial risk alone and the interaction between … empirical analysis performed with one-argument utility functions. Finally, we provide new estimates of indexes of relative risk …