It is observed that stock price fluctuations are slowly in upward phases like bubble, but fast in downward phases like its burst. This paper provides a new theoretical explanation of this phenomenon, especially why stock price drops sharply, based on the timing of stock sales. Investors tend to...

This study examines how basis ambiguity influences the demand for index insurance. Ambiguity is introduced into the statistical relationship between the loss and the index because they are more difficult to guess than the occurrence of the loss and the index individually. Basis ambiguity lowers...

Dictators tend to reduce the allocation amount in the experimental risky dictator game in which recipients gain the allocation probabilistically compared with the baseline dictator game. This could be attributed to probabilistic determination and social image. We conducted a series of...

This study considers the optimal demand for insurance in the presence of state-dependent background uncertainty. Its uncertainty depends on the states that are clarified by the loss occurrence, which are called the loss state and no-loss state. First, we consider a situation in which the...