We examine risk taking when the bank's preferences exhibit smooth ambiguity aversion. Ambiguity is modeled by a second … return risk. Ambiguity preferences are modeled by the (second-order) expectation of a concave transformation of the (first … banking firm finds it less attractive to take risk in the presence than in the absence of ambiguity. This result extends to …

We examine risk taking when the bank's preferences exhibit smooth ambiguity aversion. Ambiguity is modeled by a second … return risk. Ambiguity preferences are modeled by the (second-order) expectation of a concave transformation of the (first … banking firm finds it less attractive to take risk in the presence than in the absence of ambiguity. This result extends to …

general view of constant relative risk aversion to investigate on different equivalence relations. Then we compare our results …

low (high) output prices. To minimize regret, the firm is induced to raise (lower) its output optimal level. The skewness …

low (high) output prices. To minimize regret, the firm is induced to raise (lower) its output optimal level. The skewness …

distribution that captures the firm's uncertainty about which of the subjective beliefs govern the exchange rate risk. Ambiguity … uncertainty when the firm's preferences exhibit smooth ambiguity aversion. Ambiguity is modeled by a second-order probability … profit conditional on each plausible subjective distribution of the exchange rate risk. Within this framework, we show that …

distribution that captures the firm's uncertainty about which of the subjective beliefs govern the exchange rate risk. Ambiguity … uncertainty when the firm's preferences exhibit smooth ambiguity aversion. Ambiguity is modeled by a second-order probability … profit conditional on each plausible subjective distribution of the exchange rate risk. Within this framework, we show that …

case of constant relative risk aversion (of some order) to investigate on different equivalence relations in order to …

general view of constant relative risk aversion to investigate on different equivalence relations. Then we compare our results …

general view of constant relative risk aversion to investigate on different equivalence relations. Then we compare our results …