We show that, if an individual's utility function exhibits a degree of relative temperance smaller than one, the individual will react, in a plausible way, to each of three common shifts in the stochastic distribution of his wealth, namely to FSD shifts, mean-preserving spreads and increases in...

Using a sample of European abstract art we show that reservation prices constrain pre-auction estimates in such a way that we are more likely to observe overestimation relative to the midpoint of the estimation window. At the same time, we also find that the low pre-auction estimate is a more...

We investigate the predictive power of hedonic models compared to that of pre-auction estimates in the context of art auctions. We use a panel data consisting of abstract paintings and a methodology that employs the estimates as instrumental variables in the framework of a hedonic regression...

Despite the absence of a formal definition of the relationship between the marginal and the global effects of risk, in the literature termed the economics of uncertainty, intuition would suggest it unjustifiable to presume that these two concepts are categorically independent. This paper...

El modelo de Sandmo (1971) para la empresa competitiva bajo incertidumbre en el precio ha sido objeto de investigación desde su aparición en 1971, en parte por el hecho de que se hayan identificado tres enfoques diferentes para señalar el efecto marginal de riesgo. Uno de estos enfoques ha...