The preferred risk habitat hypothesis, introduced here, is that individual investors select stocks with volatilities … commensurate with their risk aversion; more risk-averse individuals pick lower-volatility stocks. The investors' portfolio … stocks are sold they are replaced by stocks of similar volatilities, and the more risk averse customers indeed hold less …

In this paper, we study the determinants of the value of informal risk sharing groups. In particular, we look at the … if individuals can deviate form risk sharing agreements in coalitions or not. We test empirically several predictable … size of risk sharing groups can be rejected or that only imperfect risk sharing is obtained within the village because of …

are likely to modify students' risk-taking preferences in economically important ways. To test this, we designed a … expected monetary value than the alternative outcome with a certain payoff - and in which the sensitivity of observed risk … preferences for risk-taking are indeed sensitive to whether the girl attends a single-sex or coed school. Girls from single …

We model the impact credit constraints and market risk have on the vertical relationships between firms in the supply … chain. Firms which might face credit constraints in future investments become endogenously risk averse when accumulating … pledgable income. In the short run, the optimal supply contract therefore involves risk sharing, thereby inducing double …

. Assuming that students' attitudes toward risk can be represented by a CRRA utility, we show that the risk-aversion parameter … of the coefficient of relative risk aversion, between 0.1 and 0.9. These results are obtained with a rich sample of 12 …

consistent with theory. We also use this indicator to address the importance of self-selection when relating indicators of risk …We use household survey data to construct a direct measure of absolute risk aversion based on the maximum price a … consumer is willing to pay to buy a risky asset. We relate this measure to a set of consumers’ decisions that in theory should …

The standard expectations augmented theory of ex-ante purchasing power parity (PPP), which was first developed by Roll …, assumes that agents are risk neutral. A Covered Purchasing Power Condition is developed which holds for the general case of … risk aversion. A risk-augmented form of ex-ante PPP is then derived using a Lucas-style asset pricing framework. From this …

This paper analyzes the effects of network positions and individual risk attitudes on individuals' strategic decisions … factors, such as the number of (direct) neighbors, local clustering and individuals' risk attitudes. …

We show that in order to determine whether one decision-maker is more risk averse than another, it is sufficient to … comparisons of risk aversion can be made even in situations of ‘background risk’. Since expected utility becomes a function of … mean and standard deviation, risk aversion can be measured by the marginal rate of substitution between mean and standard …