We elicit subjects' willingness to pay to reduce future risk. In our experiments, subjects are given a cash endowment and a risky lottery. They report their willingness to pay to exchange the risky lottery for a safe one. Subjects play the lottery either immediately, eight weeks later, or...

In this experimental study we examine behavior relating to voluntary contributions to reduce expected losses associated, for example, with the occurrence of natural disasters or major industrial accidents. We ask subjects to allocate tokens between a private investment and a public investment....

We study the attitudes of junior and senior employees towards strategic uncertainty and competition, by means of a market entry game inspired by Camerer and Lovallo (1999). Seniors exhibit higher entry rates compared to juniors, especially when earnings depend on relative performance. This...

This study estimates the human cost of failures in the CCS industry in 2050, using the actuarial approach. The range of expected fatalities is assessed integrating all steps of the CCS chain: additional coal production, coal transportation, carbon capture, transport, injection and storage, based...

Using a recent household survey conducted in Senegal, I examine the impact of negative and positive income shocks on departures from and entries in the household. I focus on differences in responses to shocks across the urban and rural sectors as well as age and gender groups. Striking...

We define a coherent risk measures as set-valued maps satisfying some axioms. We show that this definition is a convenient extension of the real-valued risk measures introduced by Artzner, Delbaen, Eber and Heath (1998). We then discuss the aggregation issue, i.e. the passage from valued random...

Information and Risk in the Medieval Doctrine of Usury during the Thirteenth Century

With a market entry game inspired by Camerer and Lovallo (1999), we study the attitudes of junior and senior employees towards strategic uncertainty and competition. Seniors exhibit higher entry rates compared to juniors, especially when the market capacity is not too low or when earnings from...

The few pages that Adam Smith devoted to lotteries, mainly in the Wealth of Nations (1776) did not receive much attention. They nonetheless constituted an opportunity to introduce a sophisticated analysis of individual decision under risk. Through various examples, Smith pointed out a...