According to theoretical models of valuing risky corporate securities, risk of default is primary component in overall … yield spread. However, sizable empirical literature considers it otherwise by giving more importance to non-default risk … the subjective empirical treatment of default risk. By using post-hoc estimator approach of Lubotsky & Wittenberg (2006 …

"subjective" risk for "objective" risk à la Rothschild and Stiglitz (1970). A weakened independence axiom may them be set over … opposite to a convex measure of risk (Föllmer and Schied 2002). It may be viewed as a theoretical justification for choosing … this measure of risk. …

Although it is endowed with many interesting properties, the theory of decision-making under risk by Loomes and Sugden … are risk averse or risk prone, (b) risk is defined in a consistent way with risk aversion, (c) the functional is but the … opposite to a convex measure of risk (Föllmer ans Schied [2002]) when constant marginal utility is assumed and (d) violations …

We analyze the link between pessimism and risk-aversion. We consider a model of partially revealing, competitive … rational expectations equilibrium with diverse information, in which the distribution of risk-aversion across individuals is … unknown. We show that when a high individual level of risk-aversion is taken as a signal for a high average level of risk …

women. Women are mainly influenced by their degree of risk aversion, but men are not. Men compete more against men than …

behavior of potentially risk-averter policy-makers in a controlled dynamic stochastic environment. Work remains to be done in …

stereotype of risk averse and less competitive older employees. …

This chapter of a collective book aims at presenting the basics of decision making under risk. We first define notions … of risk and increasing risk and recall definitions and classifications (that are valid independently of any … representation) of behavior under risk. We then review the classical model of expected utility due to von Neumann and Morgenstern …