choice problem concerns the investment of an amount of money in a safe option and a risky option when there is a 'global risk …We investigate a novel dynamic choice problem in an experiment where emotions are measured through self-reports. The … risk can reduce the amount invested in the risky option. This result cannot be explained by classical Expected Utility or …

consistent with the theoretical results: in the experiment, investment levels with and without legal protection are comparable …Understanding the impact of legal protection on investment is of major importance. This paper provides a framework for … addressing this issue, and shows that investment may actually be higher in the absence of legal protection. Focusing on the …

This Paper investigates the empirical relationship between uncertainty and investment dynamics. This is motivated by … the real options literature, which suggests a weaker response of investment to demand shocks at higher levels of … can be detected as a smaller impact of sales growth on investment for firms facing higher uncertainty. Using a stock …

variable is the particular decision stage at which a global risk is resolved: (i) before the investment decision; (ii) after … the investment decision but before the resolution of the investment risk; (iii) after the resolution of the investment … problem involves the presence of a 'global risk', that is, a chance of losing everything whichever safe or risky option is …

equilibrium version of the model with heterogeneous investors who are familiar with different assets, we find that the risk … premium of stocks depends on both systematic and idiosyncratic volatility, and that the equity risk premium is significantly …

competition a¤ects the industrial dynamics of investment, concentration, and expected returns. When firms have similar production …

This paper provides evidence for a causal effect of equity prices on corporate investment and employment. We use fire … whose stocks are most underpriced have considerably lower investment and employment than industry peers not subject to any … fire sale discount. The causal effect of underpricing on investment is found to be largely concentrated on the most …

question, the evidence suggests uncertainty is damaging for short-run investment and hiring, but there is some evidence it may …