We present a preference foundation for Chance Theory (CT), a model of decision making under uncertainty where the … the expected value of a lottery to the latter, so they are weakly risk averse. Besides explaining behavioral … irregularities like the expected utility paradoxes of Allais and Rabin, CT also separates risk attitude in the strong sense from …

their risk aversion parameter invest less in risky assets than wealthy investors with identical risk aversion uncertainty …. -- Risk Aversion ; Preference Uncertainty ; Risk-taking ; Asset Allocation …We show that if an agent is uncertain about the precise form of his utility function, his actual relative risk aversion …

their risk aversion parameter invest less in risky assets than wealthy investors with identical risk aversion uncertainty …We show that if an agent is uncertain about the precise form of his utility function, his actual relative risk aversion … may depend on wealth even if he knows his utility function lies in the class of constant relative risk aversion (CRRA …

We develop a theory of “risky utilities”, i.e. private firms that manage an infrastructure for public service, and that … may be tempted to engage in excessively risky activities, such as reducing maintenance expenditures (at the risk of … provoking a break-down of the system) or in speculation (at the risk of incurring massive losses it cannot bear). These risky …