We study a two-stage R&D project with an abandonment option. Two types of uncertainty influence the decision to start R … differences in risk premia. We deduct testable hypotheses on the basis of which we empirically analyze the impact of uncertainty …&D. Demand uncertainty is modelled as a lottery between a proportional increase and decrease in demand. Technical uncertainty is …

their risk aversion parameter invest less in risky assets than wealthy investors with identical risk aversion uncertainty. …We show that if an agent is uncertain about the precise form of his utility function, his actual relative risk aversion … may depend on wealth even if he knows his utility function lies in the class of constant relative risk aversion (CRRA …

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

experiments. Contrary to the traditional view of expected utility theory, the choices can be explained in large part by previous … outcomes experienced during the game. Risk aversion decreases after earlier expectations have been shattered by unfavorable … outcomes or surpassed by favorable outcomes. Our results point to reference-dependent choice theories such as prospect theory …

(Generalized AutoRegressive Score) and GARCH models, extending them to Student's t-GARCH and t-GAS. Second, an important risk … standard option pricing inapplicable. Therefore we parametrize the investor's risk preference and use utility indifference …

In this paper methods of mixing decision rules are investigated and applied to the so-called multiple job type … assignment problem with specialized servers which is modeled as continuous time Markov decision process. Performance optimization … the described mixing methods a suitable static decision rule is mixed with some dynamic decision rules which are easy to …

This paper provides a review of some connecting literature in Decision Sciences, Economics, Finance, Business …