The paper examines in the laboratory how risk-taking situations are affected by the conditions of observing other's choices (observer) and being observed by others (source). By extending Yechiam et al.'s (2008) experimental design to the domain of gains we find that observers are more probable...

This chapter deals with nonparametric estimation of the risk neutral density. We present three different approaches which do not require parametric functional assumptions on the underlying asset price dynamics nor on the distributional form of the risk neutral density. The first estimator is a...

We propose a new approach to optimal portfolio selection in a downside risk framework that allocates assets by maximizing expected return subject to a shortfall probability constraint, reflecting the typical desire of a risk-averse investor to limit the maximum likely loss. Our empirical results...