On the basis of a laboratory experiment conducted at FAU, we investigated financial decisions under risk and ambiguity … least once. Almost no subject was irrationally risk-seeking, whereas a large share of subjects was irrationally risk …-averse. The numberof irrationally risk-averse subjects was higher in the case of ambiguity, when the probabilities of the …

Short term climate events such as the sea surface temperature anomaly known as El Niño are financial risk sources … leading to incomplete markets. To make such risk tradable, we use a market model in which a climate index provides an extra … investment option. Given one possible market price of risk each agent can maximize the exponential utility from three sources of …

to explain cryptocurrency risk and return. …

reliance of European investors on banks and build up a market-based risk-sharing channel between member states. Our empirical … provide evidence that (i) financial flows are generally pro-cyclical; (ii) market-based risk-sharing mechanisms tend to break … systemic financial crisis. During the Great Recession, failing market risk-sharing was replaced by the ECB through the cross …

On the basis of a laboratory experiment conducted at FAU, we investigated financial decisions under risk and ambiguity … least once. Almost no subject was irrationally risk-seeking, whereas a large share of subjects was irrationally risk …-averse. The number of irrationally risk-averse subjects was higher in the case of ambiguity, when the probabilities of the …

The study investigates to what extent key measures of family related policy in Germany contribute to economic stability …