China, Europe, Japan, and the US started with large public programs more than five years ago to make electric passenger cars popular. While China’s government aimed to create a strong Chinese car industry by leapfrogging to electric vehicles, Europe, the US, and Japan tried to compete with...

The main result of the paper is the following characterization of the generalized arcsine density p <Subscript> γ </Subscript>(t) = t <Superscript> γ−1</Superscript>(1 − t)<Superscript> γ−1</Superscript>/B(γ, γ)   with <InlineEquation ID="IEq1"> <EquationSource Format="TEX">$${t \in (0, 1)}$$</EquationSource> </InlineEquation> and <InlineEquation ID="IEq2"> <EquationSource Format="TEX">$${\gamma \in(0,\frac12) \cup (\frac12,1)}$$</EquationSource> </InlineEquation> : a r.v. ξ supported on [0, 1] has the generalized arcsine density...</equationsource></inlineequation></equationsource></inlineequation></superscript></superscript></subscript>

This paper develops a systematic approach to quantifying the effect of judgmental biases on aggregate risk measures. Starting with the standard risk management process, we derive the areas that require expert judgment as input in order to aggregate risk into risk measures such as Earnings at...