Though it is an important means for enterprises to increase market demand and boost profits, trade credit can carry risks. Besides, risks also result from uncertain demand. Decision-makers’ attitude towards risk will influence the decisions of enterprises, so meaningful study impact preference on supply chain performance. This paper explores effect risk-averse preferences manufacturer or retail...

It is well documented that executives granted stock options tend to exercise early and in a few large transactions or “blocks”. Standard risk-neutral valuation models cannot explain these patterns, and attempts to capture the exercise behavior of risk averse executives have been limited to the special case of one option. This paper solves for the optimal exercise behavior for a risk averse exec...

We show that there can be significant difference between risk preferences of individual investors and aggregate preferences toward risk in the economy. To demonstrate this, we investigate aggregate properties of an economy where all investors have convex utility functions corresponding to risk seeking behavior. In the case of risk seeking individual agents with identical initial endowments, ass...

We study a pure exchange economy where two classes of infinitely-lived identical isoelastic traders with heterogeneous expectations about state transitions trade a risky asset and a riskless bond. We provide conditions on agents’ preferences and beliefs under which a speculative phenomenon as reported in Harrison and Kreps (1978) arises. No speculation appears when the risk aversion coefficient...

Human adults tend to avoid risk. In behavioral economic studies, risk aversion is manifest as a preference for sure gains over uncertain gains. However, children tend to be less averse to risk than adults. Given that many of the brain regions supporting decision-making under risk do not reach maturity until late adolescence or beyond it is possible that mature risk-averse behavior may emerge fr...

This paper studies several variants of 2 × 2 games with unique mixed strategy equilibria, which we call asymmetric matching pennies games. In experimental studies of behavior in these games, observed choice frequencies are typically much different from the mixed strategy Nash predictions. This paper reports experimental results for a variety of such games, and shows that a structural econometri...

Empirical research of consumer online shopping behavior has generally established that risk associated with online shopping is an important factor when consumers consider whether to shop online or in a brick-and-mortar store. Literature also indicates the importance of information search and product evaluation in consumer purchasing decisions. Building on these results, this paper develops an e...