households reduce their financial risk exposure when confronted with background risk. Our novel modelling approach - termed a … risk, and is unique in recovering for, any given risky asset class, the shares that are reallocated to a safer asset … category. Background risk exerts a significant impact on household portfolios, resulting in a 'flight from risk', away from …

excessive financial risk. Recent theory concludes that 10-15% of a worker's wealth portfolio can be prudently invested in … financial risk. We also find that families with employer stock are found to express more tolerance of financial risk, have … financial risk does not appear to represent a substantial problem in practice for most employee share owners, a small minority …

take risk as measured by the general risk question. We demonstrate that this disposition, which we call risk conception, is … strongly associated with optimism, a stable facet of personality and that it predicts real-life risk taking. The general risk … question captures this disposition alongside pure risk preference. This enlightens why the general risk question is a better …

anchoring phenomenon in financial decision-making. We find that contestants anchor heavily on the initial dollar value of a clue … in their wagering decision, even though there exists no rational reason to do so. More than half of all wagers occur … manifests itself among college students. Overall, our findings suggest anchoring plays a substantial role in financial decision …

We study the choice of a principal to either delegate a decision to a group of careerist experts, or to consult them … individually and keep the decision-making power. Our model predicts a trade-off between information acquisition and information …

decision making in complex decision tasks relative to conscious thought. Different from prior work testing this prediction, we … processing in complex decision making. …

We examine whether biases identified in the behavioral-economics literature apply in decision-making for others (DMfO …). We conduct a laboratory experiment in which subjects make decision on behalf of themselves and others in eighteen tasks … that measure the following biases: present-bias in time preferences, reflection effect in risk preferences, ambiguity …

decisions. In this challenge, they confront two questions: what decision theory to follow and how to implement it in AI systems …. This paper provides answers to these questions and makes three contributions. The first is to discuss how economic decision … consideration of procedural rationality, overcoming computational difficulties, and understanding decision-making in disequilibrium …