A simple trading model employs Bayes Rule to aggregate traders' forecasts about risky assets' returns. Bayes Rule operates like an omnipotent market-maker in performing tasks that in 1776 Adam Smith attributed to the "invisible hand."

This note uses stochastic dominance to help decision makers who are expected utility maximizers choose between risky investments with minimal knowledge of the decision maker's utility function. More specifically, we employ second-order stochastic dominance. It is argued that for two risky...

We show how to construct uniform pricing frameworks for various insurance products that have prespecified deductibles. It is shown that the deductible insurance policies' indemnity payoff functions resemble those of distinctive derivative securities; therefore, the actuarially fair premia can be...