their risk aversion parameter invest less in risky assets than wealthy investors with identical risk aversion uncertainty. …

Agents involved in the formation of a social or economic network typically face uncertainty about the benefits of … creating a link. However, the interplay of such uncertainty and risk attitudes has been neglected in the network formation … and payoffs of individuals. Moreover, we show how the generated network architecture depends on the uncertainty in the …

This paper demonstrates that well-established biases in decision making under uncertainty can generate poverty traps. A …