problem, agents overestimate the return on their investment and exhibit a preference for skewness. In general equilibrium …

We conduct an experiment to study the prevalence of the higher order risk attitudes of prudence and temperance, in a … prudent from imprudent, and temperate from intemperate, behavior. We relate individuals’ risk aversion, prudence, and … with risk aversion, prudence, and temperance, in both the student and the demographically representative sample. An …

equilibrium version of the model with heterogeneous investors who are familiar with different assets, we find that the risk … premium of stocks depends on both systematic and idiosyncratic volatility, and that the equity risk premium is significantly …

(biased) risk-return expectations are predictive for investment in socially responsible mutual funds without tax benefits. Our … and link them to behavior in a controlled experiment and to survey responses. We show that social preferences rather than …

-selection problem under capital risk by assuming sophisticated but time-inconsistent agents. We introduce stochastic hyperbolic … greater than the time-consistent, exponential case and,importantly, it is also more responsive to changes in risk. These …

Define the riskiness of a gamble as the reciprocal of the absolute risk aversion (ARA) of an individual with constant … “duality” axiom which, roughly speaking, asserts that less risk-averse individuals accept riskier gambles. The index is …