I revisit the question of which motive underlies insurance demand. I draw on the literature of state-dependent utility and on the literature of imperfectly divisible consumption to argue that the general purpose of insurance is not a risk transfer, but meeting a conditional need. In this way,...

There is a general acceptance of the fact that a significant direct relationship between financial markets and macroeconomic variables exists, especially by considering the assertion that developed financial markets correspond to high GDP levels. This paper provides an investigation of the...

Why do people appear to forgo information by sorting into “echo chambers”? We construct a highly tractable multi-sender, multi-receiver cheap talk game in which players choose with whom to communicate. We show that segregation into small, homogeneous groups can improve everybody’s...

We analyze the effect of the coach's gender on risk-taking in women's National Collegiate Athletic Association (NCAA) basketball teams. We find that the coach's gender has a sizable and significant effect on the team's risk-taking, a finding that is robust to several empirical strategies,...

Some consumption opportunities, e.g. medical treatments, are both indivisible and only valuable in particular states of nature. The existence of such state-dependent indivisible consumption opportunities influences a person's risk attitudes. In general, people are not risk averse anymore even if...

In this explorative study, we adopt a knowledge-centred perspective on clusters and investigate whether clusters' internal structure explains clusters' external (knowledge) collaborative strategies. All in all, the main analytical issue underlying this paper is the following: do internal...