Women are generally more risk averse than men. We investigated whether between- and within-gender variation in financial risk aversion was accounted for by variation in salivary concentrations of testosterone and in markers of prenatal testosterone exposure in a sample of >500 MBA students. Higher levels of circulating testosterone were associated with lower risk aversion among women, but not a...

In this paper we analyse a pure jump incomplete market where the risky assets can jump upwards or downwards. In this market we show that, when an investor wants to maximise a HARA utility function of his/her terminal wealth, his/her optimal strategy consists of keeping constant proportions of wealth in the risky assets, thus extending the classical Merton result to this market. Finally, we comp...

Risk aversion and decreasing absolute risk aversion play prominent roles in the expected utility theory of demand for insurance against a known risk of accident losses. Demand for insurance against an accident risk that is not known with certainty depends on the attitude toward bearing this ambiguity as well as the underlying risk. Ambiguity aversion in the recursive model developed by Klibanof...

We use a model of optimal portfolio choice to measure heterogeneity in risk aversion among households in Thai villages. There is substantial heterogeneity in risk preferences, positively correlated in most villages with alternative estimates based on a full risk-sharing model.

This paper characterizes downside risk aversion in a simple and intuitive manner. The characterization highlights certain features of downside risk aversion that are common with traditional risk aversion in regards the comparative statics of risk-free wealth. Also, using this characterization one can simplify considerably a theorem by Jindapon (2010) relating to greater downside risk aversion a...

Provider profiles are an important component of efforts to improve both healthcare productivity and quality. Risk adjustment is the attempt to account for differences in the risk for specific outcomes of cases in different groups in order to facilitate more meaningful comparisons. The value of provider profiles, whether used internally or released to the public, depends both on adequate risk ad...

W use a controlled experiment to analyze gender differences in stereotypes about risk preferences of men and women across two distinct island societies in the Pacific: the patrilineal Palawan in the Philippines and the matrilineal Teop in Papua New Guinea. We find no gender differences in actual risk preferences, but we find evidence for culture-specific stereotypes. Like men in Western societi...

Some people prefer to make risky decisions in their live, such as for avocation or even everyday decision making. Since Bauer first presented the conception of perceived risk in the decision making of consumer behavior, the role of perceived risk in product choice has attracted much attention and decisions such as choosing unknown objects have been known to be risky. Here in this study, we focu...