The paper investigates the relation between the risk preferences of traders and the information aggregation properties … to the full revelation of the state when traders are more risk-averse. The observed pattern of prices is close to the … risk-neutral benchmark, while individuals are risk averse both in a risk elicitation task and when estimating their risk …

millions of users in recent years. The present paper studies the implications of copy trading for the risk taking of investors … significant increase in risk taking of subjects. This increase in risk taking is even larger when subjects are provided with the … option to directly copy others. We conclude that copy trading reduces ex-ante welfare, and leads to excessive risk taking. …

average about 40% of the risk neutral fundamental value. Neither uncertainty about the value of total dividend payments nor … specification can rationalize the low traded price in our indefinite-horizon asset markets, while risk attitudes do not play such an …

average, about 40% of the risk-neutral fundamental value. Neither uncertainty about the value of total dividend payments nor … preference specification that models the dynamic realization of dividend payments and incorporates risk preferences can …

We examine the optimal customization of a financial derivative in the presence of a background risk. This problem … includes the model of finding the optimal constant amount of a given pecuniary risk as a degenerated case. We show the … importance of this perspective with a preference-free solution for the pecuniary background risk case and a general solution for …

between risk and uncertainty is implemented by applying the Gilboa-Schmeidler (1989) maxmin with multiple priors framework to …