Climate change must deal with two market failures, global warming and learning by doing in renewable use. The social … fixed proportion of world GDP. The climate externality is more severe than the learning by doing one. …

This paper shows that a strictly increasing and risk averse utility function with decreasing absolute risk aversion is … necessarily differentiable with a positive and absolutely continuous derivative. The cumulative absolute risk aversion function …, called the absolute risk aversion density, is a generalization of the coefficient of absolute risk aversion, and it is well …

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 …

Using a large sample of retail investors as well as experimental data we find that risk and ambiguity aversion are … positively correlated. We show the common link is decision style: intuitive thinkers tolerate more risk and ambiguity than … find that risk and ambiguity aversion vary with individual characteristics and wealth. The wealthy are less risk averse but …

utility function. We then fit the experimental choices to this model to assess the risk attitude of our subjects. Despite the … substantial heterogeneity across subjects, decreasing absolute risk aversion and increasing relative risk aversion are the most … prevalent risk types, and we can classify more than 50% of the subjects in this combined category. We also find evidence of …

averse to risk and ambiguity. The evidence is largely correlational, however, leaving open the question of the direction of … causality. In this paper, we present experimental evidence of causation running from reliance on intuition to risk and ambiguity … lowers the probability of being ambiguity averse by 30 percentage points and increases risk tolerance by about 30 percent in …