Chuang, O-Chia; Eeckhoudt, Louis; Huang, Rachel J.; … - In: Insurance: Mathematics and Economics 52 (2013) 3, pp. 465-468
When decision makers invest in effort to reach their targets, they face multiple sources of risk: first the risk of failure and second the noise that surrounds either the target or the initial situation. In this paper, we examine how effort is adjusted to account for changes in this risky...
