in time. We show that in each problem, all risk-averse decision makers have the same (problem-dependent) ranking over … short-term risky assets. Moreover, in each problem, the ranking is represented by the same risk index as in the case of CARA …

setting with moral hazard and risk-averse agents who have private information on their ability. Two heterogenous firms …, high-ability agents are over-incentivized and bear too much risk. For a range of intermediate degrees of competition …