prospect theory either, so that a model which would explain all evidence on decisions under risk is still to be found. …This paper summarizes the major events in the recent history of modelling human decisions under risk. After presenting … the basics of expected utility theory, the key pieces of evidence are described which showed that under certain …

This paper pits expected utility theory and cumulative prospect theory against each other as regards their descriptive … utility theory is not descriptively valid. The most promising alternative, cumulative prospect theory, is then presented in … evidence. It is pointed out that there are other empirical observations which cannot be explained by cumulative prospect theory …

well-researched schism between strategic management and financial theory. Options theory provides a potent tool to resolve …

Hedging strategies represent basic instrument used toward eliminating financial risk. Increasing volatility of … select hedging strategies. Five basic hedging strategies ? delta hedging, minimum variance, minimum value at risk, maximum … portfolios consisting of risk assets (share, bond, commodity price, and exchange rate) and hedged assets (financial derivative …

stochastic utility. In this article we reassume the von Neumann and Mongernstern explanation to this paradox based on the risk … situational risk seeking behaviour of players under the boundary of survival). …

The theory of corporate finance considers taking decisions on implementation of IPOs as one of the most significant …