arbitrary (but finite) number of projects and the termination time. The optimal policy depends on the projects' risk …-adjusted drifts that are determined by their drifts, volatilities and the curvature (or relative risk aversion) of the agent's payoff … function. We prove that the optimal policy only selects projects in the spanning subset. Further, if the projects' risk …

in time. We show that in each problem, all risk-averse decision makers have the same (problem-dependent) ranking over … short-term risky assets. Moreover, in each problem, the ranking is represented by the same risk index as in the case of CARA …

We assess the ability of different risk profiling measures to predict risk taking along a multi-stage decision process …. The latter involves decisions under ambiguity, decisions under risk, decisions after gaining experience and decisions … after receiving outcome information on previous decisions. We find that in all decisions risk taking can be predicted by …

Using a specially designed experiment, we investigate whether and how interdependence in risk exposure i.e., risk … taking by some members of a potential risk sharing group affecting not only their own but also their co-members risk exposure …, affects both risk taking and ex post sharing. The experimental subjects were Sri Lankan small-holders who face interdependent …

take risk as measured by the general risk question. We demonstrate that this disposition, which we call risk conception, is … strongly associated with optimism, a stable facet of personality, and that it predicts real-life risk taking. The general risk … question captures this disposition alongside pure risk preference. This likely contributes to the predictive power of the …

take risk as measured by the general risk question. We demonstrate that this disposition, which we call risk conception, is … strongly associated with optimism, a stable facet of personality and that it predicts real-life risk taking. The general risk … question captures this disposition alongside pure risk preference. This enlightens why the general risk question is a better …

risk. Furthermore, we determine whether subjects are averse to collective risk — the variability in the sum of payoffs of … the other. The first presentation draws attention to inequality in payoffs, the second to collective risk. We find that … risk changes choice only marginally and not significantly, though in the direction of collective risk reduction. We …

an increase in ambiguity is associated with increased investor activity. It also leads to a reduction in risk …

We define a class of risk-taking-neutral (RTN) background risks. These background risks have the property that they … will not alter decisions made with respect to another risk, for individuals with HARA utility. If we wish to compare a … decision made with and without some exogenous background risk, it is often easier to compare the decision made to one made with …

We derive the conditions for the optimal portfolio choice within a constant relative risk aversion type of utility … asset returns. We illustrate the role — beyond risk aversion — played by higher-order moments in the optimal decision to … form a portfolio of risky assets. In particular, we show that higher-order risk attitudes such as prudence and temperance …