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Development risk
Development risk is a risk that is unknown at the time a product is launched and that is discovered as…
Summary
Should we discount the far-distant future at its lowest possible rate ?
In this paper, we elaborate on an idea initially developed byWeitzman (1998) that justifies taking the lowest possible discount rate…
Summary
How Should the Distant Future be Discounted When Discount Rates are Uncertain ?
The so-called "Weitzman-Gollier puzzle" is the fact that two seemingly symmetric and equally plausible ways of dealing with uncertain future…
Summary
Large Risks, Limited Liability and Dynamic Moral Hazard
We study a continuous-time principal-agent model in which a risk-neutral agent with limited liability must exert unobservable effort to reduce…
Summary
Risk Attitude, Beliefs Updating and the Information. Content of Trades: An Experiment
We conduct a series of experiments that simulate trading in financial markets and which allows us to identify the different…
Summary
Modern companies and extreme risks
The definition of risk appetite is absolutely essential in insurance and reinsurance, where risk is the raw material. It refers…
Summary
Using the past to predict economic risks
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An Illustrative Example of Pricing Risk
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