. Underlying their measures of uncertainty is the hypothesis that an increase in uncertainty leads to lower consumption by …The Global Crisis demonstrated to the world that Ratings Agencies had misled the public about the stability of … surge in the stock market would be self-correcting. Recent papers have discussed the role of "uncertainty" and its …

We propose a model of instrumental belief choice under loss aversion. When new information arrives, an agent is … posteriors lead to larger utility than the prior. In choosing her belief, the agent optimally trades off these psychological … gains and losses against the belief's objective performance. Consistent with empirical evidence, belief updating in this …

mixed. To better understand the unique behavioral characteristics of entrepreneurs and the causes of these mixed results, we … perform a large "lab-in-the-field" experiment comparing entrepreneurs to managers - a suitable comparison group - and … employees (n = 2288). The results indicate that entrepreneurs perceive themselves as less risk averse than managers and …