Journal article
Certain and uncertain utility: A new perspective on financial innovation
Economics Letters, Vol.158, pp.7-9
2017
Abstract
We show that discontinuous preference over certain and uncertain outcomes (as in Andreoni and Sprenger, 2009, 2012) have interesting implications for financial innovations. It motivates financial innovations aimed at carving riskless assets from risky ones. If improbable risks are neglected, then excess carving may take place with disastrous subsequent consequences. © 2017 Elsevier B.V.
Details
- Title
- Certain and uncertain utility: A new perspective on financial innovation
- Authors
- Hammad Siddiqi (Author) - University of Queensland
- Publication details
- Economics Letters, Vol.158, pp.7-9
- Publisher
- Elsevier BV
- Date published
- 2017
- DOI
- 10.1016/j.econlet.2017.06.009
- ISSN
- 0165-1765
- Organisation Unit
- School of Business and Creative Industries; University of the Sunshine Coast, Queensland; USC Business School - Legacy
- Language
- English
- Record Identifier
- 99450769402621
- Output Type
- Journal article
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