economic theory to address this issue. We find that the relation between the appropriate compensation and the mean and median …, as well as the degree of risk aversion. Since the consumption uncertainty associated with compensation generally exceeds …

percent of mean income. In this paper we use economic theory to determine the relation between the appropriate make …

percent of mean income. In this paper we use economic theory to determine the relation between the appropriate make …

the case with toxic torts. Risk aversion and ambiguity aversion tend to have a similar impact on optimal liability rules … liability dominates negligence when the injurer has lower degrees of risk and ambiguity aversion than the victim and can … standard risk and ambiguity. Ambiguity arises when the causal link between conduct and harm is not univocal, as is frequently …

the case with toxic torts. Risk aversion and ambiguity aversion tend to have a similar impact on optimal liability rules … liability dominates negligence when the injurer has lower degrees of risk and ambiguity aversion than the victim and can … standard risk and ambiguity. Ambiguity arises when the causal link between conduct and harm is not univocal, as is frequently …

This paper studies how auditors' risk aversion shapes the audit market and how it interacts with legal liability. The … more risk-averse auditors disproportionately benefit from a reduction in liability risk. However, whether audit standards … main pillar of the analysis is that the relation between risk aversion and the supplied audit quality is generally non …

insurance by strictly-risk averse agents and risk-neutral firms when they enjoy limited liability. When exposed to a bankrupting …

Measuring risk aversion is sensitive to assumptions about the wealth in subjects' utility functions. Data from the same … simultaneously with risk aversion. This paper first shows how wealth estimates can be identified assuming constant relative risk … aversion (CRRA). Using the data from a recent experiment by Holt and Laury (2002), it is shown that most subjects' behavior is …

under the expected utility theory (EUT) are somewhat subject to context. Other findings imply that the risk premium (RP), as …The present paper introduces a theoretical framework through which the degree of risk aversion with respect uncertain … prices can be measured through the context of the indirect utility function (IUF) using a lab experiment. First, the paper …

previous studies that found a negative relation between cognitive ability and risk aversion into perspective and in particular … show that cognitive ability is related to noisy behavior rather than risk preferences. We also find age and education to be … and more robustly correlated to risk preferences …