degree of pessimism of the representative agent is the mean of the individual ones weighted by their index of absolute risk …

This paper studies the hedging of price risk when payment dates are uncertain, a problem that frequently occurs in … static hedging strategy is sufficient. -- risk management ; hedging ; forwards ; uncertainty of time …

extent observed team decisions under risk are actually consistent with the principles of rational choice, specifically the …). We introduce a team decision algorithm, <i>excess-risk vetoing</i>, that combines simple majority voting with the right … principles of <i>Expected Utility Theory</i> (EUT) and of <i>Portfolio Selection Theory</i> (PST). The experiment is performed …

We report a controlled laboratory experiment examining risk-taking and information aggregation in groups facing a … common risk. The experiment allows us to examine how subjects respond to new information, in the form of both privately …

We report an experiment examining risk taking and information aggregation in groups. Group members come to the table … with an individual preference for a choice under risk, based on privately received information, and can share this … information with fellow group members. They then make a decision under risk on behalf of the group using a random dictatorship …

long horizons. We present an experiment comparing decision making under certainty, risk, and ambiguity, over a shorter … lifecycle. Results show that behavior in the ambiguity treatment is markedly different than in the risk condition and it is …

of the bears and the purchases of the bulls are balanced." We propose a descriptive theory of finance explicating Keynes … pessimism, defined as the composition of the investor's preferences for risk and her preferences for ambiguity. Bulls and bears …

We consider a standard one-agent decision-making problem under risk and we address the following question: under what … conditions is utility maximization equivalent to 'risk' minimization, where the measure of risk used by the decision-maker is a … conservative coherent risk measure? …

We study higher-order risk preferences, i.e. prudence and temperance, next to risk aversion in social settings …. Previous experimental studies have shown that higher-order risk preferences affect the choices of individuals deciding … different social settings under controlled conditions. We elicit higher-order risk preferences of individuals and systematic …