Aspects of Investor Behaviour Under Risk

Benjamin M. Friedman · V. Vance Roley

12 citations0/0 files storedPalgrave Macmillan UK eBooks

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Decision-Making and Behavioral Economics Financial Markets and Investment Strategies Economic theories and models

Abstract

A greatly enhanced understanding of the nature of economic uncertainty, and with it substantial insight into economic behaviour in circumstances under which uncertainty is central to necessary decisions, stand as one of Kenneth Arrow’s most significant contributions. His classic lectures on Aspects of the Theory of Risk-Bearing clarified key elements of the theory of choice under uncertainty, formalized crucial aspects of risk-averse behaviour, and explored the implications of the relevant theory for such important economic activities as resource allocation and insurance. These lectures, together with many of Arrow’s other papers on risk and uncertainty, have provided a foundation that is now standard in monetary and financial economics.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 12 citations exist upstream.

References

1964CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK*2019Theory of games and economic behavior 1952PORTFOLIO SELECTION*1965The Valuation of Risk Assets and the Selection of Risky Investments in Stock Portfolios and Capital Budgets 1975THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.]1971Optimum consumption and portfolio rules in a continuous-time model 1945The Theory of Games and Economic Behavior 1958Liquidity Preference as Behavior Towards Risk

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.