Assuming a risk-neutral bank and assuming household utility to be exponential, we show how under information symmetry …

Many decisions under risk involve alternatives with multiple and possibly non-financial attributes. In this paper, we … characterize risk apportionment preferences in a bivariate setting. We distinguish between desirable and undesirable attributes and …. Our results show how to unlock the powerful machinery of risk apportionment in the many situations in which decision …

for safety and feasibility to regulate against significant risk. For significant risks, especially those that are … operations, and their interoperability. Further, it defends feasible risk reduction as an effective decision and regulatory tool …

labor-income risk can explain much of this risk-taking pattern. Uncontrollable labor-income risk stresses middle …, middle-income households reduce (controllable) financial risk. Richer households, having less pressure, can afford more risk …-taking. The poor take low risk because they avoid jeopardizing their subsistence consumption. …

contributions in insurance economics since that time. The review begins with the role of utility, risk, and risk aversion in the … beginning of modern economic analysis of insurance activity. This chapter reviews the main theoretical and empirical … insurance literature and summarizes work on the demand for insurance, insurance and resource allocation, moral hazard, and …

We present a new mechanism for encouraging risk taking within organizations that relies on the provision of decision … insurance to managers. Since insurance increases the likelihood of free riding, we also introduce a technique that mitigates … expected payoff for the firm in spite of its risk-adverse managers …

Reputational risk has become a critical concern for most organizations. Insurers, who rely on trust to generate … expectations, which we test using a rich data set on operational loss risk events. Results indicate that passage of the Sarbanes … significantly related to reputational risk. In some samples, Tobin's Q, the level of competition, and the discount rate also were …

Index triggers have enabled the extension of insurance to disaster risks by providing a simple mechanism to determine … insurance payment. Disaster risks are notoriously difficult to insure against due to the covariant nature of risks, moral hazard … and adverse selection. Index based risk transfer minimizes these obstacles by not fully insuring the risk. However, such …

drive the demand for risk reduction, and some to alter both. Our findings suggest that 30 percent of all insurance payments …We run a novel experiment to explore the relationship between the perception of real-life risks and the demand for risk … life. For each risk, subjects can pay premiums in order to reduce the likelihood of total bankruptcy. Our results show a …