not embed any conceptual contradictions, because consistent with stylized theory - dichotomy of risk premium functions … marginal utility for wealth necessarily is facilitated by a risk premium function that only robustly is parameterized with … reference to `relative safety', as opposed to `relative riskiness' of assets, a risk premium function that then explicitly is …

schemes affect liquidity provision and asset prices. Investors face a trade-off between risk and return. At the benefit of a … liquidity provision to force traders to trade at a lower price. By contrast, bonus caps make traders value the asset less than … investors. This should encourage liquidity provision and decrease prices. In contrast to these predictions, we find that under …

This study examines risk premia in a laboratory market featuring a long-lived asset. The research is enabled by …, statistically significant risk premia are reported, in support of standard asset pricing models. Potential determinants of the risk … premia are investigated. These risk premia are not sensitive to expected variance, but do vary positively with the magnitude …

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 …

bankruptcy at another firm where they concurrently serve as a director. This increase in risk-taking is concentrated among firms …

markets we observe active trading and prices strongly driven by average risk perception. While standard finance theory …What people perceive as risk clearly goes beyond variance. Several papers have shown that, e.g., probability of loss … plays a more prominent role in perceived risk than does variance. We are the first to explore how individual risk perception …

the firm's behavior. An experiment tests the theoretical predictions. In line with theory, Strict Liability and Negligence … firm to compensate potential victims. In contrast with theory, prevention rates absent liability are much higher and …