extent observed team decisions under risk are actually consistent with the principles of rational choice, specifically the … principles of Expected Utility Theory (EUT) and of Portfolio Selection Theory (PST). The experiment is performed with individuals … individuals, teams accumulate significantly more expected value at a significantly lower total risk (measured in SD). We introduce …

The experiment reported in this paper identifies the effect of experience on revealed risk attitudes by examining “one …-shot” insurance choices made by subjects faced with a low-probability risk and their choices when they are faced with repeated … exposure to an identical risk. I find that subjects engaged in greater risk taking when making repeated choices. Estimates from …

Most textbook finance literature assumes risk to be the standard deviation of returns (volatility), which is not only … is consistent with investors’ actual perception of risk. Our method is presenting investors return distributions with … different risk characteristics for which they have to state their perceived risk and make investment decisions. Our results hint …

Prospect Theory (PT) and Constant Relative Risk Aversion (CRRA) have clear-cut implications for the optimal asset … allocation between stocks and the risk-free asset as a function of the investment horizon. While CRRA preferences imply that the …

specification includes two parameters: one for ambiguity attitudes and another for risk attitudes. We also estimate a three …

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

idiosyncratic value appraisals. Transparency in price risk enabled by the prism-like trading procedure is shown to facilitate … risk perceptions and its related issues …

offenders’ risk attitudes based on their responses to various punishment schemes, special attention must be paid to whether and … – that criminals are more responsive to increases in the certainty than the severity of punishment. Under a general set of … assumptions, this implies that criminals are risk seeking. We show that this implication is no longer valid when forfeiture of …