of risk, both being associated to the stresses supported by the socio-economic system. We propose instruments for … resilience build-up and management based on a novel classification of risk and resilience management regimes corresponding to the … system's degree of uncertainty/predictability and stress level within it. Four main quadrants are identified: Ad hoc …

We analyze in this chapter decision-making when costs and benefits of an action are uncertain, that is, when future … consumer's surplus is a correct measure of the net benefits from the action. It turns out that for one individual, the correct …-contingent consumer's surplus and the state-contingent marginal utility of wealth and a second term representing risk aversion. This …

reduction (self-protection) so that correlation becomes endogenous. If prevention concerns only one risk, introducing a second … exogenous risk increases the level of prevention expenditures, even if correlation is negative. If prevention expenditures may … increased dependence increases aggregate prevention expenditures, but not necessarily prevention expenditures for each risk due …

Realized divergence gauges the distinct realized moments associated with time-varying uncertainty and is tradeable with …-free option markets, implied divergence systematically decomposes the price of uncertainty into the contributions of distinct …

fundamental uncertainty. This new context has features from prediction markets that have been shown previously to mitigate price …

uncertainty and other effects that are particularly manifest in cognitive processes, which makes it well suited for the study of …

Under risk, Arrow-Debreu equilibria can be implemented as Radner equilibria by continuous trading of few long …-lived securities. We show that this result generically fails if there is Knightian uncertainty in the volatility. Implementation is …

In situations of what we now describe as radical uncertainty, the core model of agent behaviour, of rational autonomous … that in situations where radical uncertainty is present, we require theoretical "null" models of agent behaviour which are … different from those of economic rationality. Under uncertainty, fundamentally different behavioural rules are "rational". The …

between risk and uncertainty is implemented by applying the multiple priors framework to beliefs about the probability of …, ultimate lenders and financial intermediaries. The model is used to investigate the impact of uncertainty about the likelihood …