exploration of the effects of pessimism and doubt on asset returns. Journal of Economic Dynamics and Control 26, 1075–1092]. We … establish that Abel's result on the impact of doubt on the risk premium is not correct in general; see Abel [2002. An …

exploration of the effects of pessimism and doubt on asset returns. Journal of Economic Dynamics and Control 26, 1075–1092]. We … establish that Abel's result on the impact of doubt on the risk premium is not correct in general; see Abel [2002. An …

. overconfidence) as well as pessimism (resp. doubt) both emerge as optimal beliefs. Furthermore, we obtain a positive correlation … between pessimism (resp. doubt) and risk-tolerance. The consensus belief is pessimistic and, as a consequence, the risk … of Nash equilibrium. We find that a strategic behavior leads to beliefs subjectivity and heterogeneity. Optimism (resp …

. overconfidence) as well as pessimism (resp. doubt) both emerge as optimal beliefs. Furthermore, we obtain a positive correlation … between pessimism (resp. doubt) and risk-tolerance. The consensus belief is pessimistic and, as a consequence, the risk … of Nash equilibrium. We find that a strategic behavior leads to beliefs subjectivity and heterogeneity. Optimism (resp …

optimism and riskiness on resource exploitation. …