The paper investigates the relation between the risk preferences of traders and the information aggregation properties … to the full revelation of the state when traders are more risk-averse. The observed pattern of prices is close to the … risk-neutral benchmark, while individuals are risk averse both in a risk elicitation task and when estimating their risk …

average about 40% of the risk neutral fundamental value. Neither uncertainty about the value of total dividend payments nor … specification can rationalize the low traded price in our indefinite-horizon asset markets, while risk attitudes do not play such an …

average, about 40% of the risk-neutral fundamental value. Neither uncertainty about the value of total dividend payments nor … preference specification that models the dynamic realization of dividend payments and incorporates risk preferences can …

This paper describes results from a new experiment studying determinants and effects of economic risk-taking. In each … higher are the returns but also the higher is the risk of a crash and a loss. This setup permits us to investigate how … transparency and incentive structures – two issues intensively debated in policy circles – affect risk taking and vulnerability to …

bubbles. We consider a setting where participants sorted according to their degree of risk aversion trade in experimental … asset markets. We show that risk sorting is able to explain bubbles partially: Markets with the most risk-tolerant traders … exhibit larger bubbles than markets with the most risk averse traders. In our study risk aversion does not correlate with …

I develop a model of statistical arbitrage trading in an environment with "fat-tailed" information. If risk … choose to ignore a wide range of pricing errors. Although model risk hinders their willingness to trade, arbitrageurs can …

empirical evidence is consistent with investors’ attitudes toward uncertainty and risk, firms’ fundamentals and leverage effects …