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Nowadays, uncertainty in market demand poses considerable risk to the retailers that supply the market. On the other hand, the risk-averse behaviors of retailers toward risk may have evolved over time. Considering a supply chain including a manufacturer and a population of retailers, the authors intend to investigate how the population of retailers tends to evolve toward risk-averse behavior. Moreover, this study aims to evaluate the effects of wholesale-retail price of manufacturer on evolutionary stable strategy (ESS) of the retailers.

Due to market uncertainty, a supply chain with a population of risk-averse and risk-neutral retailers was investigated. The wholesale pricing strategy is determined by a manufacturer acting as a leader, while retailers who make order quantity decisions act as followers. An integrated Cournot duopoly equilibrium and evolutionary game theory (EGT) approach has been used to model this situation.

A numerical real-world case study using Iran Khodro Company is analyzed by applying the proposed EGT approach. The study provides managerial insights to the manufacturer as well as retailers in developing their strategies. Results showed that risk behavior of retailers significantly affects optimal wholesale/retail price, profits and ESS. In the long term, the retailers tend to have a risk-neutral behavior to gain more profit. In the short term, if a retailer choses risk-averse strategy, in the long term, it will change its strategy to obtain more profit and remain in the competitive market.

The contributions in this research are fourfold. First, ESS concept to investigate the risk-averse or risk-neutral attitudes of the retailers was used. Second, the uncertain risk behavior of the competing retailers was considered. Third, the effect of varying wholesale pricing was investigated. Fourth, the equilibrium wholesale and retail prices have been obtained by considering uncertainty demand and risk.

Managers must make numerous strategic decisions in order to initiate and implement a business model innovation (BMI). This paper examines how managers perceive the management team interacts when making BMI decisions. The paper also investigates how group biases and board members’ risk willingness affect this process.

Empirical data were collected through 26 in-depth interviews with German managing directors from 13 companies in four industries (mobility, manufacturing, healthcare and energy) to explore three research questions: (1) What group effects are prevalent in BMI group decision-making? (2) What are the key characteristics of BMI group decisions? And (3) what are the potential relationships between BMI group decision-making and managers' risk willingness? A thematic analysis based on Gioia's guidelines was conducted to identify themes in the comprehensive dataset.

First, the results show four typical group biases in BMI group decisions: Groupthink, social influence, hidden profile and group polarization. Findings show that the hidden profile paradigm and groupthink theory are essential in the context of BMI decisions. Second, we developed a BMI decision matrix, including the following key characteristics of BMI group decision-making managerial cohesion, conflict readiness and information- and emotion-based decision behavior. Third, in contrast to previous literature, we found that individual risk aversion can improve the quality of BMI decisions.

This paper provides managers with an opportunity to become aware of group biases that may impede their strategic BMI decisions. Specifically, it points out that managers should consider the key cognitive constraints due to their interactions when making BMI decisions. This work also highlights the importance of risk-averse decision-makers on boards.

This qualitative study contributes to the literature on decision-making by revealing key cognitive group biases in strategic decision-making. This study also enriches the behavioral science research stream of the BMI literature by attributing a critical influence on the quality of BMI decisions to managers' group interactions. In addition, this article provides new perspectives on managers' risk aversion in strategic decision-making.

This paper aims to develop a conceptual framework for further understanding the risks embedded in co-creation services in high-contact service transactions. It delineates behavioral and economic perspectives focusing on agency costs, risk behavior, compensation structure and provides a context in which information is processed.

Following an extensive review of the literature, propositions are advanced that relate an agent’s risk behavior to information processing, compensation and the propensity to engage in co-creation. These propositions provide a complementary context for understanding risks in the co-creation process.

The propositions detail how a service agent’s information processing can be enhanced if the customer’s expected utility from transactions is maximized by managing the agent’s risk behavior and earnings potential. A compensation structure that balances fixed base and variable pay can motivate risk-taking and the agent’s propensity to engage in co-creation.

This paper extends the understanding of agency risks in the co-creation of hospitality services that integrates economic and behavioral perspectives with information processing. Theoretical implications include a broader context of the risks underlying co-creation. Practical implications relate to how earnings potential could be maximized by considering the agent’s risk behavior and the expected utility arising from such transactions.

This paper reports a new experimental test of the notion that behavior switches from risk averse to risk seeking when gains are “reflected” into the loss domain. We conduct a sequence of experiments that allows us to directly compare choices under reflected gains and losses where real and hypothetical payoffs range from several dollars to over $100. Lotteries with positive payoffs are transformed into lotteries over losses by multiplying all payoffs by –1, that is, by reflecting payoffs around zero. When we use hypothetical payments, more than half of the subjects who are risk averse for gains turn out to be risk seeking for losses. This reflection effect is diminished considerably with cash payoffs, where the modal choice pattern is to exhibit risk aversion for both gains and losses. However, we do observe a significant difference in risk attitudes between losses (where most subjects are approximately risk neutral) and gains (where most subjects are risk averse). Reflection rates are further reduced when payoffs are scaled up by a factor of 15 (for both real and hypothetical payoffs).

This study aims to examine the impact of chief executive officers’ (CEOs’) personal characteristics on firms’ risk taking and the moderating role of family ownership on this relationship.

This study used 2,647 firm-year observations of non-financial firms listed on Pakistan Stock Exchange over the period 2013–2021. To test the hypotheses, the authors used ordinary least squares regression and, to resolve the possible endogeneity problem, the authors used system generalized method of moments technique.

Drawing insights first from upper echelons theory, the authors report that CEOs with business, economics, finance and/or management educational background and female CEOs reduce firms’ risk-taking behaviour. Further, using insights from social and organizational identity theoretical perspectives, the results indicate that due to strong family affiliation and organizational identity, family owners exhibit risk aversion behaviour and moderate this relationship.

This study provides novel evidence of risk averse behaviour of CEOs with business, economics, finance and/or management educational background and female CEOs along with moderating impact of family ownership on this relationship in an emerging economy. Overall, the results extend empirical support for upper echelons and social identity theories in an emerging market context.

This research focuses on the financial literacy level, stock participation, and financial behavior among millennials in Indonesia.

Logit regression analysis is performed to analyze the relationship among tested variables. The weighted percentage analysis is also used to portray a response in relation to the sample of respondents. Such an analysis is widely used in Indonesia.

Findings suggest that for basic and advanced financial literacy level topics, millennials with higher education level and profession related to economy are the ones who have high basic financial literacy level. However, as respondents become older and/or get married, the basic financial literacy level tends to decrease. When the questions are advanced, the education level is statistically significant. If they have more available money to spend than others, then they tend to have a higher advanced financial literacy level. However, the advanced financial literacy level of female respondents who are older and/or have children tends to decrease. Subsequently, the relationship between financial literacy level and stock market participation is evident when millennials have a high basic and/or advanced financial literacy level, suggesting that they tend to participate in the stock market. Overconfident millennials or those who focus on learning economics also likely participate in the stock market.

Travel time variability has generally been recognized as one of the most important attributes in travelers' route choice decisions. In fact, many empirical studies have indicated that both passengers and freight carriers are strongly averse to travel time variability, because it introduces uncertainty to their route choice decisions. In this chapter, we examine the effect of incorporating travel time variability and risk-taking behavior into the route choice models and its impact on the estimation of travel time reliability under demand and supply variations.

In this study, the authors argue that because of female traits, the proportion of female directors in the board helps the governing body make more cautious decisions, thus improving the investment efficiency of the firm. Therefore, this research aims to propose the mediating role of caution in reexamining the relationship between the proportion of female directors and the efficiency of the investment of a firm.

This study uses data on 100 nonfinancial listed firms in Malaysia between 2015 and 2018. The authors use several multivariate regression analyses to test the mediating effect.

The result shows that female directors significantly affect investment efficiency. Moreover, the findings in this research confirm the mediating role of caution in the relationship between the proportion of female directors and the efficiency of firm investment.

This study proves that increasing the proportion of females in the board of directors is an effective governance method to improve the investment efficiency of listed firms in Malaysia.

In general, this study contributes to the literature by extending the current understanding of risk propensity differences between male and female directors and introducing the concept of caution.

Buy-sell arrangements for the death of a co-owner may be funded with life insurance. Although many factors may enter the decision of whether to fund the buy-sell with life insurance, the degree of tolerance to risk is a major factor. The purpose of this paper is to estimate the risk aversion necessary to make life insurance funding the preferred option.

The decision whether to use life insurance was modeled using the expected utility theorem under state-dependent utility. Aversion to risk was varied to determine at what risk aversion levels insurance was preferred. Analysis was done for difference ages and thus mortality risk and for difference levels of insurance markups.

Life insurance funding is preferred at relatively low amounts of risk aversion, especially if the surviving partner becomes more risk averse upon the co-owner's death. A lower percentage of life insurance would be used if insurance premiums are significantly above actuarially fair premiums.

Given currently available insurance rates, most closely held small businesses probably should fund their buy-sell arrangements activated upon death of a partner with life insurance. However, cash flow constraints may hinder insurance purchase and planning may be myopic in that more imminent strategy issues may be present that a future death.

Although the use of life insurance to fund buy-sell arrangements is typically suggested for the small closely held business, little economic or financial analysis has been completed to date.

Triggered by perceived inefficiency and inequality, buyers and suppliers coordinate with each other. The purpose of this paper is to develop a framework of coordination process based on theoretical review and verifications from three case studies.

The approach takes the form of three longitudinal and in‐depth case studies, which involved coordination processes between a toy manufacturer with three European retailers in one calendar year.

The three case studies provided three main observations. First, the coordination process followed some basic sequential activities: evaluation, derivation, offer and negotiation, assessment, and implementation. Second, the coordination processes deviated from this basic sequence with an interactive coordination cycles of assessment, re‐derivation, and re‐offer and negotiation (called inner‐helix) when there was disagreement. Third, closer mode of coordination, which involved joint evaluation and derivation of coordination solutions, reduced the numbers of iterative coordination cycles. These empirical findings verified the presupposed framework of coordination process.

Three qualitative case studies may not be highly generalisable and multiple dyadic coordination processes may occur. However, the findings form a foundation for further understanding of the coordination process.

The proposed framework of the coordination process further expands the theories of inter‐organisational relationship and the inter‐organisational cooperative process. It also reveals that deliberate evaluation and derivation activities (and even jointly with other supply chain members) may significantly improve coordination.