Neumann-Morgenstern expected utility functions using cooperative game theory. The social network literature studies various … ordinary risk . We show that this leads to a class of centrality measures that is fully determined by the degrees (i.e. the …

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 …

estimate of risk aversion ? and the time preference discount rate ? perindividual. This can be done because the consumption of …

-free and are relevant to many fields encountering catastrophic risk analysis, such as, perhaps most noticeably, insurance and … risk management. …

In this paper, we connect the social network theory on centrality measures to the economic theory of preferences and … links with its neighbours. A crucial property of a preference relation over network positions is neutrality to ordinary risk … is neutral to ordinary risk. Similarly, we characterize a class of affine combinations of the outdegree and indegree …

We study the optimal taxation of risk-free and excess capital income with heterogeneous rates of return, alongside an … optimal nonlinear earnings tax. Households can hold three assets: one risk-free, one risky but diversifiable, and one a … private investment with idiosyncratic risk whose expected return differs among households. Contrary to expectations, the …