Following the risk-taking model of Seel and Strack, $n$ players decide when to stop privately observed Brownian motions with drift absorption at zero. They are then ranked according their level stopping paid a rank-dependent reward. We study problem principal who aims induce desirable equilibrium performance by choosing how much reward is attributed each rank. Specifically, we determine optimal...

Abstract This study empirically investigates the relationship between customer concentration and corporate risk-taking. We find that overall significantly reduces However, varies across different settings. Specifically, negative customer-base risk-taking is only present in more marketized regions, competitive industries, firms with lower market shares, less innovative non-state-owned firms, tho...

Despite being one of the healthiest developmental periods, morbidity and mortality rates increase dramatically during adolescence, largely due to preventable, risky behaviors. Heightened reward sensitivity, coupled with ineffective cognitive control, has been proposed to underlie adolescents' risk taking. In this study, we test whether reward sensitivity can be redirected to promote safe behavi...