Risky targets and effort
Journal
Insurance: Mathematics and Economics
Journal Volume
52
Journal Issue
3
Pages
465-468
Date Issued
2013
Author(s)
Abstract
When decision makers invest in effort to reach their targets, they face multiple sources of risk: first the risk of failure and second the noise that surrounds either the target or the initial situation. In this paper, we examine how effort is adjusted to account for changes in this risky environment. ? 2013 Elsevier B.V.
Subjects
Effort
Higher-order preferences
Increase in risk
Stochastic dominance
Type
journal article