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Incentives and Risks in Relationships Between the Principal and the Agent

Minasyan, Vigen - Volkswirtschaftliche Fakultät, … - 2014

The paper addresses a basic model of moral hazard (risk) [Gibbons, 2010; Gibbons, 2005] and suggests some of its modifications. In the basic model of moral risk, questions are put and examined that have not been considered in the previous researches. In particular, it is proved that the level of...

Persistent link: https://www.econbiz.de/10011123517

A Quantum-Conceptual Explanation of Violations of Expected Utility in Economics

Aerts, Diederik; Broekaert, Jan; Czachor, Marek; … - Volkswirtschaftliche Fakultät, … - 2011

The expected utility hypothesis is one of the building blocks of classical economic theory and founded on Savage's Sure … presence of the 'disjunction effect'' of decision theory and use our earlier study of this effect in concept theory to put …

Persistent link: https://www.econbiz.de/10011107454

Are small groups expected utility?

Morone, Andrea; Morone, Piergiuseppe - Volkswirtschaftliche Fakultät, … - 2012

. Specifically, we intend to assess if there exists a risky choice theory that statistically fits group decisions significantly …

Persistent link: https://www.econbiz.de/10011108949

A Theoretical Assessment on Optimal Asset Allocations in Insurance Industry

Jarraya, Bilel; Bouri, Abdelfettah - Volkswirtschaftliche Fakultät, … - 2013

In recent years the financial markets known a rapid development and become more and more complex. So, many regulatory requirements, focused on banks as well as insurance sector, have been developed. These regulatory are concentrated essentially on business risk control and required capital to...

Persistent link: https://www.econbiz.de/10011110361

Optimal Use of Put Options in a Stock Portfolio

Peter N, Bell - Volkswirtschaftliche Fakultät, … - 2014

In this paper I consider a portfolio optimization problem where an agent holds an endowment of stock and is allowed to buy some quantity of a put option on the stock. This basic question (how much insurance to buy?) has been addressed in insurance economics through the literature on rational...

Persistent link: https://www.econbiz.de/10011114281

Corporate Management of Highly Dynamic Risks: The Case of Terrorism Insurance in Germany

Thomann, Christian; Pascalau, Razvan; Schulenburg, … - Volkswirtschaftliche Fakultät, … - 2007

This article extends the theory of corporate risk management to encompass highly dynamic risks. Taking Viscusi'�s (1989 …) prospective reference from the context of individual decision making and applying it to a corporate context we propose a theory of …

Persistent link: https://www.econbiz.de/10005789691

Solving Daniel Bernoulli's St Petersburg Paradox: The Paradox which is not and never was

Vivian, Robert William - Volkswirtschaftliche Fakultät, … - 2003

It has been accepted for over 270 years that the expected monetary value (EMV)of the St Petersburg game is infinite. Accepting this leads to a paradox; no reasonable person is prepared to pay the predicted large sum to play the game but will only pay, comparatively speaking, a very moderate...

Persistent link: https://www.econbiz.de/10005790291

On Non-binary Personal Preferences in Society, Economic Theory and Racial Discrimination

Naqvi, Nadeem - Volkswirtschaftliche Fakultät, … - 2010

This paper examines some of the consequences for economic theory of the replacement of binary personal preferences by … both much damage to existing theory and greater opportunity for providing formal explanations of such phenomena as … economic theory that is founded on a choice theory that is based exclusively on binary relational personal preferences. …

Persistent link: https://www.econbiz.de/10008529321

Rational Choice Theory: conceptual structure and recent evolution.

Abitbol, Pablo; Botero, Felipe - Volkswirtschaftliche Fakultät, … - 2006

conceptual structure of Rational Choice Theory, RCT. The main goal is to present precisely and concretely the basic precepts of … critiques.Thus, it presents a brief discussion about how the acknowledgement of the theory’s limitations has guided some aspects …

Persistent link: https://www.econbiz.de/10005616589

Ambiguity aversion is the exception

Kocher, Martin G.; Lahno, Amrei Marie; Trautmann, Stefan T. - Volkswirtschaftliche Fakultät, … - 2015

An extensive literature has studied ambiguity aversion in economic decision making, and how ambiguity aversion can account for empirically observed violations of expected utility-based theories. Almost all relevant applied models presume a general dislike of ambiguity. In this paper, we provide...

Persistent link: https://www.econbiz.de/10011199869