-range probability than is proposed by the expected utility model and risk-seeking behavior over "long-shot" odds is common …

explain a set of behavioral anomalies identified across four distinct domains of decision-making: choice under risk, choice …. Building on existing models of noisy Bayesian cognition, we formally propose that cognitive uncertainty generates these … risk and ambiguity, belief updating, and survey expectations. Our framework makes predictions that we test using exogenous …

We study a dynamic-contracting problem involving risk sharing between two parties -- the Proposer and the Responder … wealth in the risky asset, but they can share the underlying investment and termination risk. When the project ends they … consume their final accumulated wealth. The Proposer and the Responder have constant relative risk aversion R and r …

between consumption losses in a disaster and the risk premium, a small amount of risk sharing can significantly attenuate the … effect that disaster risk has on the equity premium. We characterize the sensitivity of risk premium to wealth distribution … lead to significant variation in disaster risk premium. It also highlights the conditions under which disaster risk premium …

options in defined contribution retirement plans. We document large differences in realized TDF returns and risk profiles … reflects optimal risk-taking by fund families with low market share, especially those entering the market after 2006. Using … plan-level data, we find little evidence that 401(k) plan sponsors match the risk profile of the TDFs in their plans to the …

aggregate risk. We propose a theory to explain these risk exposures. We study a financial accelerator model where entrepreneurs … inefficiently high risk exposure for entrepreneurs …

Though risk aversion and the elasticity of intertemporal substitution have been the subjects of careful scrutiny when … temporal resolution of risk matters and a quantitative assessment of how much it matters should be part of the calibration … of risk into the discussion of the quantitative properties of long-run risks and related models …

experiments, we compare people's initial risk-taking plans to their subsequent decisions. Across settings, people accept risk as … part of a "loss-exit" strategy--planning to continue taking risk after gains and stopping after losses. Actual behavior … deviates from initial strategies by cutting gains early and chasing losses. More people accept risk when offered a commitment …

of cognition. Women are more risk averse than men. Over an initial range, women require no further compensation for the …This paper demonstrates gender differences in risk aversion and ambiguity aversion. It also contributes to a growing … as men. Psychological variables account for some of the interpersonal variation in risk aversion. They explain none of …