The behavior of agents in financial markets often displays biases or errors; for example, agents frequently do not compute probabilities correctly. However, we argue that these biases/errors are not always reflected in prices. In particular, we hypothesize that agents who make errors in computing probabilities lose confidence in their probability estimates when they face market prices that are ...

The present study applies explanatory style theory and the content analysis of verbatim explanation (CAVE) technique toward examining the leadership behaviors and effectiveness of key Civil War generals. The results of our study suggest that relatively optimistic explanatory styles may lead to aggressiveness and risk taking while relatively pessimistic explanatory styles may lead to passivity a...

The perception of threat and the experience of anxiety are distinct but related public reactions to terrorism. Anxiety increases risk aversion, potentially undercutting support for dangerous military action, consistent with terrorists’ typical aims. Conversely, perceived threat increases a desire for retaliation and promotes animosity toward a threatening enemy, in line with the usual goals of ...

The present study contributes to the literature on the economics of discrimination by considering some consequences of sexual orientation discrimination. Specifically, we analyse LGB people's decision to "come out" within an identity utility theoretical framework, and estimate the model on a representative sample of the EU population. We aim to investigate the factors that systematically affect...

In this paper we examine how positive risk taking for or by people with learning disabilities is talked about, conceptualised and enacted. We identify tensions and contradictions in positive risk taking discourses which we suggest is unhelpful in terms of clarifying for educational practitioners how positive risk taking might be implemented. We suggest that a conceptual framework that incorpora...

the current paper examines intertemporal capital asset pricing model in iran’s stock market. dynamic conditional correlation was used to estimate conditional variance and covariance portfolios with market returns. time varying beta is estimated by kalman filter method. based on the obtained results, risk aversion coefficients were between 0.013 and 0.28 and the average was 0.20. significance of...

The study of risk aversion of an agent confronted by a risk situations with several parameters is an important topic of risk theory. It is tackled traditionally with probabilistic methods. When these do not offer an appropriate shaping we can use Zadeh’s possibility theory . In this paper a possibilistic model of risk aversion with several parameters is proposed. The notion of possibilistic ris...

The classic Allingham and Sandmo’s (Journal of Public Economics, 1 (1972) 323–338) portfolio choice approach to income tax evasion has been increasingly criticised because it requires an ‘excess’ degree of risk aversion to explain the observed rate of tax compliance. In this paper we argue that there may not necessarily be ‘excess risk aversion’; and that the evidence can be explained by the di...