• What Are Investment Timing Options
• Risk Aversion Indivisible Timing Options And Gambling Act
• Risk Aversion Indivisible Timing Options And Gambling Problems

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Studies of risk preference have empirically established two regularities that are inconsistent with the canonical expected utility model: (1) risk aversion over small gambles greatly exceeds risk aversion over larger stakes and (2) insurance buyers play the lottery. Risk Aversion, Indivisible Timing Options and Gambling †. Our main contribution is to show that, contrary to intuition, optimal behavior for such a risk averse agent can include risk increasing gambles. For example, a manager with a choice over when to disinvest from a project, a private homeowner with a property to sell, or an employee. Risk Aversion, Indivisible Timing Options and Gambling † by Vicky Henderson, David Hobson, 2011 Inthispaperwemodel thebehaviorofariskaverseagentwhoseekstomaximizeexpected utility and who has an indivisible asset and a timing option over when to sell this asset.

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What Are Investment Timing Options

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Risk Aversion Indivisible Timing Options And Gambling Act

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Risk Aversion Indivisible Timing Options And Gambling Problems

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