We study a commons problem under uncertainty, where individual actions affect the risk of a future damage event. We … show that for risk-averse agents, an extra risk on the amount of the damage induces more precautionary actions in Nash … equilibrium. Similarly, for prudent agents an extra risk in all states of the world induces more precautionary actions in Nash …

A large and still growing body of literature suggests that entrepreneurship is of exceptional importance in explaining …

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 utility from divisible consumption is concave. I propose a definition of … same reasons that rule out risk aversion turn out to be the basis of a desire to insure.This calls into question the …