We investigate how individual risk preferences affect the likelihood of selecting the more able contestant within a two …-player Tullock contest. Our theoretical model yields two main predictions: First, an increase in the risk aversion of a player … less able but less risk averse contestant can achieve an equal or even higher probability of winning than a more able but …

empirically show two main findings: first, risk-taking is positively related to the length of tax loss periods because the loss … rules shift some risk to the government; and second, the tax rate has a positive effect on risk-taking for firms that expect …

risk preferences. Here, we develop an analogous tool for choice under uncertainty – the ambiguity triangle – and show that … characterize this heterogeneity with finite-mixture estimates of a one-parameter extension of Expected Utility Theory wherein 48 …

The paper reexamines the welfare economics of intergenerational risk. Risk and its resolution over time are modeled as … preferences to (i) disentangle aversion to intergenerational inequality from aversion to risk, (ii) exhibit a preference for early … resolution of risk, (iii) show different discounting formulas depending on the magnitude of risk and on the timing of its …

literature that, when there is (only) risk type uncertainty, the optimal GR contract with renewal price set at the actuarially … fair price for low risk types provides full insurance against reclassification risk. We develop a model that includes … unpredictable (and unobservable) fluctuations in demand for life insurance as well as changes in risk type (observable) over …

This paper reports survey evidence on long-term care (LTC) risk misperceptions and demand for long-term care insurance … (LTCI) in Canada. LTC risk misperceptions is divided into three different risks: needing help for at least one activity of …. We then study how risk misperceptions correlate with individual characteristics, and evaluate how misperceptions affect …

This paper provides the first theoretical and empirical analysis of how taxation shapes the joint allocation of risk … risk to high-tax countries to maximize risk sharing with governments and all their profits to low-tax countries to minimize … expected tax payments. However, transfer pricing rules requiring risk to be compensated with a higher expected return introduce …

of financial uncertainty over the period 1969-2008. We find evidence in favor of a systematic response to financial … uncertainty over and above that to expected inflation, output gap, and output growth. However, this evidence regards the Greenspan …-Bernanke period only. Focusing on this period, the “risk-management” approach is found to be responsible for monetary policy easings …

We develop a theoretical framework to explain firms' offshoring decisions in the presence of uncertainty. This model …

-probability extreme events on environmental policy in a continuous-time real options model with “tail risk”. In a nutshell, our results … indicate the importance of tail risk and call for foresighted pre-emptive climate policies …