in our one-period framework. We show how the introduction of global uncertainty reduces the investment of the risk … neutral entrepreneur and, even more, that the risk averse one. We also show how marginal increases in risk reduce the optimal … capacity of both the risk neutral and the risk averse entrepreneur, without any restriction on the concave utility function and …

neoclassical investment model with time to build. This model also serves as the base for the empirical work, where an error …

. The coverage includes decision-making under uncertainty, measuring risk and risk aversion, insurance and asset markets …

individuals’preferences under risk. …

certain what effects will result from a reduction of pollution. We show that if an agent is sufficiently risk averse … has two possible consequencies which depend on agent risk aversion. Therefore, understanding the implication of … precautionary attitude, leads us to the consideration of the agents' risk aversion characterization and studying the effect of an …

evidence on the effects of transparency and empowerment on trust (investment by a principal) and trustworthiness (reciprocal … behavior of an agent) in a simple two-person investment game. We find that when principals are empowered by being able to … punish agents who may not act in a way the principal believes is in the principal’s best interest, trust and investment …

. Empirical evidence, however, is sparse. Using data from an experiment with 359 law and business administration students, we …

We present an experimental test of a shirking model where monitoring intensity is endogenous and effort a continuous … maximization problem of the firm. As a result, monitoring and pay should be complements. In our experiment, between and within …

laboratory experiment to study the elements and dynamics of this type of institution. Peer-to-peer reciprocity is important, and … having the ability to practice targeted reciprocity in our experiment increases contributions to the public good by 14 … settings. People thus excluded from the Òcircle of givingÓ provide a clean and strict test of indirect reciprocity, since they …