The expected utility hypothesis has been widely used in the construction of economic
models and numerous difficulties are encountered in attempting to take into account …

We study the prevalence of the higher order risk attitudes of prudence and temperance in an
experiment with a large demographically representative sample of participants. Under …

Determinants of risk attitudes of individuals are of great interest in the growing area of
behavioral economics that focuses on the individual attributes, psychological or otherwise …

This paper utilizes a thought experiment conducted by the Bank of Italy to estimate absolute
and relative risk aversion along with absolute and relative prudence for a broad cross …

The importance of risk characteristics of human capital for the design of tax and education
policy is explored. Wages are uncertain and education, while increasing the expected wage …

This chapter surveys the technical aspects of the self-protection problem in the expected
utility model. Self-protection is a costly investment to reduce the probability of loss. Even in …

Households save income for various reasons, including the need to plan for the future, the
intention to leave a bequest, and the desire to guard against unforeseen expenditures and …

This paper considers the demand for insurance in a model with uncertain indemnity.
Uncertain indemnity tends to increase the demand for insurance for precautionary reasons …

Historical and recent developments at international? nancial markets show that it is easy to
loose money, while it is dif? cult to predict future developments and op-mize decision …

Almost all economic activities in modern societies are scattered through space and time.
Transport processes, as a consequence, pervade everyday life and they have deep impact …