This study parameterizes 'Curiosity' as measure of innovation potential of individual economic agents. In presence of discovery of two additional factors, which I term, PARQ and IDRA, that dominate `Curiosity' as measure of innovation potential, there is arrival at parameterization of three...

With formal theoretical conditions as premise, this study develops a formal empirical structure which facilitates, simultaneously inferences in respect of each of rationality and efficiency of pricing of idiosyncratic risk. Using exactly the same data, the new empirical structure revolves around...

Suppose populations of economic agents that are parameterized by skewness preference. For stated agents, increasing marginal utility for wealth necessarily is facilitated by a risk premium function that only robustly is parameterized with reference to `relative safety', as opposed to `relative...

Necessarily, new technical change is facilitated by the development of new technical proficiencies. Whenever the claim to `new technical change' is robust, the accompanying `new technical proficiencies' facilitate an `outcome', in respect of which `old technical proficiencies' are intractable....

Let α denote risk preference parameters, such that α→0 (respectively, α→Z0) implies tatonnement towards risk seeking preferences (respectively, risk aversion). Suppose either of two agents, i and j enter into a market with risk preference parameters, α₀(i)=0.1 or α₀(j)=Z-0.1. With T...

Let θ denote anterior probability of equilibrium and ((r(RS))/(r(RA))), ratio of returns to assets that strictly are preferred by risk averse (RA) or risk seeking agents (RS). There exists some range, θ⊆θ satisfying, 0θ1 in context of which each of RA and RS are parameterized by increasing...

This study arrives at a unifying risk measure for each of risk aversion and risk seeking preferences, a unifying risk measure (UrM) which explicitly embeds relative valuation of any two assets. The formal theory shows the UrM is, in relation to either of conditional volatility (CoV) or...

Suppose consumers value products solely because they purvey `characteristics', ζ, which composed with time are sources of utility. Necessarily, there exists a `consumption technology (CT)', and `innovation technology (IT)' serves for the satisfaction of CT. This study arrives at an equilibrium...

In this study, the sole rational implementation of risk sharing is shown to require simultaneity of the presence, in markets of each of safe, high risk, and low risk assets. In context of the said implementation, market efficiency - which yet may deteriorate or improve - is optimized by searches...

Modeling the native properties and pricing implications of risk preferences, and explicitly imposing portfolio theory, this study arrives at the rationalization of several risk-return anomalies and some new insights. First, study findings rationalize the phenomenon, to wit, stable realizations...