Risk aversion is a fundamental trait shaping how individuals, firms and policymakers respond to uncertain outcomes. It encapsulates the preference for certain outcomes over gambles with equivalent ...

Often we confront risks: opportunities where we have some probability of gaining or losing something and have to decide whether or not to accept the opportunity. The simplest risks are financial. For ...

A mathematical framework that builds on the economic theory of hidden-action models provides insight into how the unobservable nature of effort and risk shapes investigators’ research strategies and ...

Allison Schrager is a Bloomberg Opinion columnist covering economics. A senior fellow at the Manhattan Institute, she is author of “An Economist Walks Into a Brothel: And Other Unexpected Places to ...

Risk aversion persists in October, but sentiment improves from September due to hopes for interest rate cuts and a better macro outlook. Central bank policy boosts confidence, with the highest ...

A risk-averse investor is someone who prefers to emphasize security over potential gains. Their portfolio is built to preserve capital and prevent losses first and pursue growth second. This isn't to ...