is increasing in the tax rate as soon as a suitable relative risk aversion measure is larger with auditing, than without …

The classical expected utility model of decision under risk (von Neumann-Morgenstern, 1944) has been criticized from an … could dislike risk (prefer to any lottery its expectation) without necessarily avoiding any increase in risk ; diminishing … marginal utility may coexists with "weak" risk seeking attitudes ; decision makers with the same utility function may differ in …

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 …

In this paper we analyse the risk attitude of a group of heterogenous agents and we develop a theory of comparative … collective risk tolerance. In particular, we characterize how shifts in the distribution of individual levels of risk tolerance … affect the representative agent's degree of risk tolerance. In the model with efficient risk - sharing and two agents (e.g. a …

We study the influence of risk and time preferences on trust and trustworthiness by conducting a field experiment in …. We find that while probability sensitivity or risk aversion do not affect trust, loss aversion influences trust … indirectly by lowering the expectations of return. Also, more risk averse and less present biased participants are found to be …

We examine the temporal stability of risk preference measures obtained by different elicitation methods in a controlled … laboratory experiment at two distinct times. Our results indicate remarkable temporal stability of risk measures at the … second, performance realized in a market game. When better market performers demonstrate more stable risk preferences, the …