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and interbank rate risk on the optimaldecisions on deposits and loans of a competitive bank. It is found that dueto the … bank’s behavior.Moreover, it is shown that there is an interaction between the effects of theintroduction of risk and … introduction of both sources of risk there appear direct effects as wellas portfolio effects which jointly determine changes in the …
Persistent link: https://www.econbiz.de/10005570388
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The prospect theory is one of the most popular decision-making theories. It is based on the S-shaped utility function, unlike the von Neumann and Morgenstern (NM) theory, which is based on the concave utility function. The S-shape brings in mathematical challenges: simple extensions and...
Persistent link: https://www.econbiz.de/10013142328
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insurance by strictly-risk averse agents and risk-neutral firms when they enjoy limited liability. When exposed to a bankrupting …
Persistent link: https://www.econbiz.de/10012614542
stronger distaste for low relative wealth translates into reduced relative risk aversion and, consequently, into riskier … prone to divorce exhibit risk-taking behavior that is more similar to that of single men than married men in environments …
Persistent link: https://www.econbiz.de/10012059447
stronger distaste for low relative wealth translates into reduced relative risk aversion and, consequently, into riskier … prone to divorce exhibit risk-taking behavior that is more similar to that of single men than married men in environments …
Persistent link: https://www.econbiz.de/10012024287
stronger distaste for low relative wealth translates into reduced relative risk aversion and, consequently, into riskier … prone to divorce exhibit risk-taking behavior that is more similar to that of single men than married men in environments …
Persistent link: https://www.econbiz.de/10012040579
In this paper we consider how the degree of risk aversion, and demand/cost uncertainty, influence competition on … oligopolistic markets. Under demand uncertainty, the best response strategies (both quantities and prices) are decreasing in risk … aversion, but for cost uncertainty, quantities are decreasing while prices are increasing. If firms are risk averse, past …
Persistent link: https://www.econbiz.de/10014109903
empirical test, the undiversifiable risk was measured by the correlation coefficient of one borrower with the average return of … all borrowers. The results of the test supported the hypothesis of portfolio risk pricing and suggest that the spread of … loan required that the spread of loan required by risk-averse lenders is in general higher than the risk premium of the …
Persistent link: https://www.econbiz.de/10012920146