, insurance, trade, industry, planning and forecasting. Explanations of the principle and examples of solution of three types of … high and the overweighting of low probabilities, the Allais paradox, risk aversion, loss aversion, the Ellsberg paradox …, the equity premium puzzle, etc. The principle and its consequences can be applied in the fields of banking, investment …

-based industries such as finance, insurance and gambling. We sketch an alternative approach to modeling risky choice that focuses on …Most theories of risky choice postulate that a decision maker maximizes the expectation of a Bernoulli (or utility or … useful for out-of-sample prediction. Nor do we find practical applications of Bernoulli functions in major risk …

-based industries such as finance, insurance and gambling. We sketch an alternative approach to modeling risky choice that focuses on …Most theories of risky choice postulate that a decision maker maximizes the expectation of a Bernoulli (or utility or … useful for out-of-sample prediction. Nor do we find practical applications of Bernoulli functions in major risk …

contributions and continue the development of theories of decision making under risk, the Toulouse School of Economics hosted “Risk …As in any research field, risk theory has its important questions, results, and paradoxes, as well as its seminal … papers and key authors. Louis Eeckhoudt has been a key author in the field of risk theory. To celebrate his many …

contributions and continue the development of theories of decision making under risk, the Toulouse School of Economics hosted “Risk …As in any research field, risk theory has its important questions, results, and paradoxes, as well as its seminal … papers and key authors. Louis Eeckhoudt has been a key author in the field of risk theory. To celebrate his many …

A man is a key subject of economics. “A man is irrational” - this opinion can be made from Allais paradox, risk … problems and the development of the economics. A radically new way is proposed to solve them and remove this barrier. The way …

of insurance. Third, we help answer the puzzle why the most risk averse are least likely to take up agricultural …We employ a novel approach to investigate the reasons for a low demand for agricultural insurance. We confirm that … farmers systematically undervalue agricultural insurance. First, we find that private transfers, mainly from family members …

financial market consists of: (i) the risk-free asset, (ii) a risky asset following a GBM, and (iii) a bond driven by a … stochastic interest rate following the Vasicek [1977] dynamics. We find a closed-form solution for both the optimal investment … be kept under control through the choice of the target level. Numerical applications show that the proportions of bond …