Do Wages Really Compensate for Risk Aversion and Skewness Affection? Utility theory suggests that foreseeable risk should increase the compensation for work. This paper expands on this notion: on basis of utility theory, people should care not only about risk but also about the skewness in the distribution of the compensation paid. In particular, because the degree of risk aversion ought to dec...

Intertemporal correlation aversion is an intuitive concept indicating whether an individual prefers lotteries concerning consumption at different moments in time to be positively or negatively correlated. I show that the difference between the coefficient of relative risk aversion and the inverse of the intertemporal elasticity of substitution is related, in a simple way, to the index of intert...

We examine a simple repeated principal-agent model with discounting. There are a risk averse borrower with an unobservable random income and a risk neutral lender. The efficient contract is characterized. It tends to the first-best (constant consumption) contract as the discount factor tends to one and the time horizon extends to infinity. I f the time horizon is infinite and the contract is le...

We extend behavioral research in newsvendor settings by experimentally exploring the effect of power on newsvendor order decisions under two profit conditions. We also analyze people's risk profiles and explore if the expo-power utility function, which relaxes the assumption of constant absolute risk aversion, explains observed behavior.

This paper analyzes risk aversion in discriminatory share auctions. I generalize the k ‐step auction model of Kastl (2011, 2012) and establish that marginal profits are set‐identified for any given coefficient constant absolute aversion. also derive necessary conditions best‐response behavior, which allows determining preferences from bidding data. Further, show how bidders' optimality allow co...

We analyze the e ect of environmental uncertainties on optimal shery management in a bio-economic shery model. Unlike most of the literature on resource economics, but in line with ecological models, we allow the di erent biological processes of survival and recruitment to be a ected di erently by environmental uncertainties. We show that the overall e ect of uncertainty on the optimal size of ...

Identification and analysis of farmers’ vulnerability associated with their risk aversion degree is one of the necessary requirements for planning and reducing impacts of drought in Iran. So, this study was investigated three risk vulnerability parameters (economic, social and technical) among wheat farmers categorized in accordance with their risk aversion degree in the Mashhad County (Iran) b...