Considering a simple portfolio selection problem by agents with quadratic utility, an apparently counterintuitive outcome results. When such a choice is over two assets that can be ordered in terms of riskiness, an agent that is more risk averse may optimally invest a larger portion of wealth in...

When exchange is sequential, and no binding agreements can be written, the agent acting first is exposed to the possibility that even if he honors the agreement his trading partner might not. Repeated interaction of this nature is modeled. Exchange will successfully occur when there are ample...

Building upon the intuition of Ross, a definition of more risk averse is proposed for situations in which preferences are over mean and variance. If agents can be compared by this definition, the more risk averse agent will choose a less risky alternative. If this definition cannot be applied,...

Management succession is a critical process, especially in family-owned businesses. Current models of management succession focus on elements such as personal development of potential successors and decision-making processes by incumbents and governance bodies, but do not account for...

Consider a state that chooses security levels at two sites (Targets A and B), after which a terrorist chooses which site to attack (and potentially a scope of attack). The state values A more highly. If the state knows which target the terrorist values more highly, he will choose a higher level...