The standard situation of ex post information asymmetry between borrowers and lenders is extended by risk aversion and …

compensation schemes and ambiguity on insurance and self-insurance decisions. Consistent with theory, we find that government … support for the hypothesis that attitude to risk and attitude to ambiguity are two independent phenomena. In fact in this … experiment, decision-makers are both risk-seekers (i.e., the mean WTP for insurance is on average smaller than the expected value …

Expected utility functions are limited to second-order (conditional) risk aversion, while non-expected utility … functions can exhibit either first-order or second-order (conditional) risk aversion. We extend the concept of orders of … conditional risk aversion to orders of conditional dependent risk aversion. We show that first-order conditional dependent risk …

This paper focuses on asset allocation. We show how any shapes of risk aversion can be modeled to incorporate the mixed … Meyer, 2005; Guiso and Paiella, 2008). Our setting builds on and can be compared to the well-known Constant Relative Risk …

Using a sample of 3,688 mergers and acquisitions over the period of 1992 to 2005, we find that post-merger equity risk … declines roughly 18% in the year after the announcement. We find that post-merger equity risk is negatively related to the … sensitivity of CEO wealth to stock return volatility (vega). The negative relation between vega and equity risk over the post …