Victor prefers safety more than Ursula if whenever Ursula prefers a constant to an uncertain act, so does Victor. This paradigm, whose expected utility (EU) version is Arrow and Pratt’s more risk aversion concept, will be studied in the Choquet expected utility (CEU) model. Necessary condition...

Following Aumann and Serrano (J Polit Econ 116:810–836, <CitationRef CitationID="CR2">2008</CitationRef>) who characterize by axioms an index of riskiness defined on absolute returns, we characterize a new index of riskiness defined on relative returns. Both indices are characterized by a similar principle of duality between risk and...</citationref>

Uncertainty has an almost negligible impact on project value in the standard economic model. I show that a comprehensive evaluation of uncertainty and uncertainty attitude changes this picture fundamentally. The illustration of this result relies on the discount rate, which is the crucial...

This paper axiomatizes a form of recursive utility on consumption processes that permits a role for ambiguity as well as risk. The model has two prominent special cases: (i) the recursive model of risk preference due to Kreps and Porteus [18]; and (ii) an intertemporal version of multiple-priors...

Evidence is adduced that the sages of the ancient Babylonian Talmud, as well as some of the medieval commentators thereon, were well aware of sophisticated concepts of modern theories of risk-bearing. Copyright Springer-Verlag Berlin Heidelberg 2003