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An Examination of Life Insurers’ Risk Attitudes

Machnes, Yaffa - 2011

This paper presents evidence of a significant positive relationship between the ratios of life insurance premiums quoted to smokers relative to the premiums quoted to non-smokers, and the financial strength of the insurance company. This suggests that life insurers reveal increasing relative...

Persistent link: https://www.econbiz.de/10013132067

Optimal Dynamic Risk Taking

Subramanian, Ajay - 2016

We analyze a continuous-time stochastic control problem that arises in the study of several important issues in financial economics. An agent controls the drift and volatility of a diffusion output process by dynamically selecting one of an arbitrary (but finite) number of projects and the...

Persistent link: https://www.econbiz.de/10012987776

Limits of Arbitrage and Primary Risk Taking in Derivative Securities

Tian, Meng; Wu, Liuren - 2021

Classic option pricing theory values a derivative contract via dynamic replication, and views the derivative as redundant relative to the replicating portfolio. In practice, while dynamic replication proves highly effective in drastically reducing the risk in derivative investments, the...

Persistent link: https://www.econbiz.de/10013244989

A General Approach to Estimating Random Preference Models of Risk Attitudes

Lau, Morten; Yoo, Hong Il - 2023

The random preference (RP) model provides an integral framework for modeling within-individual heterogeneity in choice behavior, by attributing this heterogeneity to preference parameters in the underlying theory of risk attitudes instead of an additive error term that is external to the theory....

Persistent link: https://www.econbiz.de/10014351166

Brexit, collective uncertainty and migration decisions

Auer, Daniel; Tetlow, Daniel - 2020

Europäischen Union - sowohl in sozialer als auch in politischer Hinsicht abzuschätzen. Unsicherheit und subjektive Wahrnehmungen … natürliches Experiment um zu zeigen, wie kollektive Unsicherheit, die durch nationale Regierungspolitik induziert wird, das … EinwanderInnen in Deutschland durchgeführt wurden, um zu zeigen, dass die Unsicherheit über zukünftige bilaterale Beziehungen und die …

Persistent link: https://www.econbiz.de/10012263481

Risk Preferences Under Heterogeneous Environmental Risk

Olbrich, Roland; Quaas, Martin F.; Haensler, Andreas; … - 2014

We study risk preferences and their determinants for commercial cattle farmers in Namibia who are subject to high precipitation risk that is heterogeneous across farms. We use data on risk preferences from questionnaire and field experiments, simulated data for on-farm precipitation risk and...

Persistent link: https://www.econbiz.de/10014179170

The 'Bomb' Risk Elicitation Task

Crosetto, Paolo; Filippin, Antonio - 2012

This paper presents the Bomb Risk Elicitation Task (BRET), an intuitive procedure aimed at measuring risk attitudes. Subjects decide how many boxes to collect out of 100, one of which containing a bomb. Earnings increase linearly with the number of boxes accumulated but are zero if the bomb is...

Persistent link: https://www.econbiz.de/10014040558

The Preferred Risk Habitat of Al-Qa'ida Terrorists

Phillips, Peter J. - 2013

The purpose of this paper is to investigate the attack method choices of terrorists. In particular, this paper addresses the question of whether the attack method choices of terrorists are guided by a preferred risk habitat. Terroristic organisations might select attack methods as part of an...

Persistent link: https://www.econbiz.de/10014193485

Dopamine and Risk Choices in Different Domains : Findings Among Serious Tournament Bridge Players

Dreber, Anna; Rand, David G.; Wernerfelt, Nils; Garcia, … - 2011

We explore how risk-taking in the card game contract bridge, and in a financial gamble, correlate with variation in the dopamine receptor D4 gene (DRD4) among serious tournament bridge players. In bridge risk-taking, we find significant interactions between genetic predisposition and skill....

Persistent link: https://www.econbiz.de/10014193647

Risk-Averse by Nation or by Religion? Some Insights on the Determinants of Individual Risk Attitudes

Bartke, Stephan; Schwarze, Reimund - 2008

Research findings have proven that the willingness to take risks is distributed heterogeneously among individuals. In the general public, there is a widely held notion that individuals of certain nationalities tend to hold certain typical risk preferences. Furthermore, religious beliefs are...

Persistent link: https://www.econbiz.de/10014213814