Degeorge, FranÁois; Moselle, Boaz; Zeckhauser, Richard - In: Journal of Risk and Uncertainty 28 (2004) 3, pp. 195-215
We analyze the risk level chosen by agents who have private information regarding their quality. We show that even risk-neutral agents will choose risk strategically to enhance their reputation in the market, and that such choices will be influenced by the mix of other agents' types. Assuming...