Cette thèse appartient au domaine de la théorie de la décision en situation d'incertitude. Elle vise à comprendre, décrire, et représenter les choix individuels dans différents contextes de décision. Notre travail se concentre sur le fait que le comportement économique est souvent influencé par la structure et le déroulement de la résolution de l'incertitude. Dans une première expérience nous avons confronté nos sujets à différents types d'incertitude – à savoir du risque (probabilités connues), de l'incertain (probabilités inconnues), du risque composé et de l'incertain composé – en utilisant des mécanismes aléatoires particuliers. Le chapitre 1 analyse l'hétérogénéité des attitudes individuelles face à l'ambiguïté, au risque composé et à l'incertain composé alors que dans le chapitre 2, le modèle d'espérance d'utilité à dépendance du rang est utilisé comme outil de mesure afin d'étudier en détails ces attitudes au niveau individuel. Le chapitre 3 confronte à l'expérience l'interprétation de l'ambiguïté en terme de croyances de second ordre et propose une méthode d'élicitation de la fonction qui caractérise l'attitude face à l'ambiguïté dans les modèles « récursifs » de décision face à l'incertain. La seconde partie de la thèse s'intéresse aux comportements de décision individuelle dans un contexte dynamique et est composée de deux études expérimentales indépendantes. Néanmoins, elles reposent toutes deux sur la décomposition de l'axiome d'indépendance en trois axiomes dynamiques: conséquentialisme, cohérence dynamique et réduction des loteries composées. Le chapitre 4 rapporte les résultats d'une expérience de décision individuelle sur les facteurs de violations de chacun de ces axiomes. Le chapitre 5 présente une catégorisation conceptuelle des comportements individuels dans des problèmes de décision séquentiels face au risque. Le cas des agents ne se conformant pas à l'axiome d'indépendance y est étudié de façon systématique et les résultats d'une expérience spécialement conçue pour tester cette catégorisation sont présentés. / This thesis belongs to the domain of decision theory under uncertainty and aims to understand, describe and represent individual choices in various decision contexts. Our work focuses on the fact that economic behavior is often influenced by the structure and the timing of resolution of uncertainty. In a first experimental part, we confronted subjects with different types of uncertainty, namely risk (known probabilities), uncertainty (unknown probabilities), compound risk and compound uncertainty, which were generated using special random devices. In chapter 1 we analyze the heterogeneity of attitudes towards ambiguity, compound risk and compound uncertainty whereas in chapter 2, we use rank dependent expected utility as a measuring tool in order to individually investigate these attitudes. Chapter 3 confronts the interpretation of ambiguity in term of second order beliefs with the experimental data and proposes a method for eliciting the function that encapsulates attitudes toward ambiguity in the “recursive” or multistage models of decision under uncertainty. The second part of the thesis deals with individual decision making under risk in a dynamic context and is composed of two independent experimental studies. Both of them rely on the decomposition of the independence axiom into three dynamic axioms: consequentialism, dynamic consistency and reduction of compound lotteries. Chapter 4 reports experimental data about violations of each of the three axioms. Chapter 5 presents a conceptual categorization of individual behavior in sequential decision problems under risk, especially those which do not conform to the independence axiom. We propose an experiment specially designed to test the predictions of this categorization.

Infrastrukturen i Sverige åldras, uppskattningsvis finns det drygt 2000 broar i landet som är 70 år eller äldre. Det finns flera aspekter att titta på för att utvärdera äldre broars kondition och FE modellering är ett vanligt verktyg som används vid utvärdering. För stålbroar är det ofta utmattning som sätter gränsen för hur länge de kan hållas i drift under säkra förhållanden. Syftet med arbetet var att utvärdera nyttan av FE modeller med olika precision med hänsyn till noggrannheten i deras genererade resultat och kostnad. En stålbro har studerats i detalj, Gamla Lidingöbron och specifikt två punkter på dess bågspann. Ritningar av bron och mätdata från forskningsprojektet \textit{Smart tillståndsbedömning, övervakning och förvaltning av kritiska broar} har legat till grund för arbetet. Mätdata utgjordes av tidshistorier över spänningsvariationer i de två studerade punkterna vid flertalet tågpassager över bron. Punkterna finns på bågspannets sekundära bärverk. Fyra modeller har skapats i BRIGADE/Plus med olika precisionsgrad och spänningshistorier för de studerade punkterna har genererats. Spänningshistorierna har sedan utvärderas med Palmgren-Miners delskadeteori för utmattning. Den förväntade ekonomiska nyttan för varje modell har uppskattats beroende av analyskostnad, sannolikheten för utmattningsbrott samt kostnad för ett eventuellt brott. På grund av brons strukturella verkningssätt blev de förenklade modellernas utmattningsresultat mycket lika resultaten från modellen med hög precisionsgrad. De verkliga axellasterna var mindre än de dimensionerande som användes i modellerna. Detta ledde till att de uppkomna spänningarna i stålet från modellerna blev större än de verkliga, men visade ett liknande beteende. Resultatet blev att modellernas utmattningskapacitet enbart utgjorde ca en femtedel av kapaciteten enligt mätningarna. Resultatet från beräkningen av den förväntade nyttan visade att det inte är ekonomiskt motiverat att använda en modell med hög precision framför en eller flera förenklade modeller. Slutsatsen blev att hög precision i en teoretisk modell inte entydigt är bättre än en förenklad modell. Arbetet har utförts vid institutionen för bro och stålbyggnad på KTH i samarbete med Sweco Civil AB. / The infrastructure in Sweden is aging. More than 2 000 bridges in the country are 70 years or older. When assessing the condition of older bridges, several aspects should be taken into account. FE modeling is one common tool to use in a bridge assessment. Fatigue is generally what limits the service life of steel bridges. The aim of this work was to evaluate the utility of higher precision in FE models, regarding the accuracy of their generated results and costs. One steel bridge has been studied in detail, Old Lidingö Bridge and specifically two points on its arc span. Drawings of the bridge and measurement data from the research project \textit{Smart Condition Assessment, Surveillance and Management of Critical Bridges} has provided the basis of this work. Measurement data has been collected from the two selected points on the bridge with strain gauges, registering the time history of the variations in tension during train passages on the bridge. Four models with different levels of precision have been created in BRIGADE/Plus. These models have generated time histories of the varying tension during  train passages. The time histories have been evaluated with Palmgren-Miner's cumulative damage model for fatigue. The expected economic utility of each set of models has been estimated based on the cost of the analysis, the likelihood failure caused by fatigue and the cost of failure. Because of the structural behavior of the bridge, the results of the simplified models became very similar to the results of the high precision model. The actual axle loads were less than the design loads used in the models. Because of this, the calculated tensions in the models became larger than the actual tensions. This also resulted in the fatigue capacity of the models only being about one fifth of the capacity according to the measurements. The calculation of the expected utility showed that it is not economically justified to use a model with higher precision over models with less precision. High precision in a theoretical model is not unambiguously better than a simplified model. The work has been carried out at the Department of Structural engineering and bridges at KTH in cooperation with Sweco Civil AB.

The alleged privacy paradox states that individuals report high values for personal privacy, while at the same time they report behavior that contradicts a high privacy value. This is a misconception. Reported privacy behaviors are explained by asymmetric subjective beliefs. Beliefs may or may not be uncertain, and non-neutral attitudes towards uncertainty are not necessary to explain behavior. This research was conducted in three related parts. Part one presents an experiment in individual decision making under uncertainty. Ellsberg's canonical two-color choice problem was used to estimate attitudes towards uncertainty. Subjects believed bets on the color ball drawn from Ellsberg's ambiguous urn were equally likely to pay. Estimated attitudes towards uncertainty were insignificant. Subjective expected utility explained subjects' choices better than uncertainty aversion and the uncertain priors model. A second treatment tested Vernon Smith's conjecture that preferences in Ellsberg's problem would be unchanged when the ambiguous lottery is replaced by a compound objective lottery. The use of an objective compound lottery to induce uncertainty did not affect subjects' choices. The second part of this dissertation extended the concept of uncertainty to commodities where quality and accuracy of a quality report were potentially ambiguous. The uncertain priors model is naturally extended to allow for potentially different attitudes towards these two sources of uncertainty, quality and accuracy. As they relate to privacy, quality and accuracy of a quality report are seen as metaphors for online security and consumer trust in e-commerce, respectively. The results of parametric structural tests were mixed. Subjects made choices consistent with neutral attitudes towards uncertainty in both the quality and accuracy domains. However, allowing for uncertainty aversion in the quality domain and not the accuracy domain outperformed the alternative which only allowed for uncertainty aversion in the accuracy domain. Finally, part three integrated a public-goods game and punishment opportunities with the Becker-DeGroot-Marschak mechanism to elicit privacy values, replicating previously reported privacy behaviors. The procedures developed elicited punishment (consequence) beliefs and information confidentiality beliefs in the context of individual privacy decisions. Three contributions are made to the literature. First, by using cash rewards as a mechanism to map actions to consequences, the study eliminated hypothetical bias as a confounding behavioral factor which is pervasive in the privacy literature. Econometric results support the 'privacy paradox' at levels greater than 10 percent. Second, the roles of asymmetric beliefs and attitudes towards uncertainty were identified using parametric structural likelihood methods. Subjects were, in general, uncertainty neutral and believed 'bad' events were more likely to occur when their private information was not confidential. A third contribution is a partial test to determine which uncertain process, loss of privacy or the resolution of consequences, is of primary importance to individual decision-makers. Choices were consistent with uncertainty neutral preferences in both the privacy and consequences domains.

The New Great Game is a geopolitical competition between regional stakeholders over energy resources in Central Asia. The author seeks to use the expected utility voting model based on Black's median voter theorem for forecasting the New Great Game in Central Asia. To judge the external validity of the voting model, the author uses data from the Correlates of War project data set, to formulate three distinct models based only on the numbers in 1992 and 1993. Capabilities and alliance data were used to develop balance of power positions and compare the outcome of 100 simulations to the actual outcome in 2000 based on Correlates of War project data. This allows us to judge whether the emergence of Russia's weak advantage as well as the continuation of the competition in the New Great Game as of 2000 could have been predicted based on what was known in 1992 and 1993. By using only one year's data to forecast the New Great Game, we are able to eliminate historical and researcher bias and judge the applicability of the model in global policy and strategic analysis.

In 1979 Daniel Kahneman and Amos Tversky created the prospect theory. It became an accepted and appropriate theory in explaining decision making under risk. The prospect theory has been one of the most cited articles in economics and Kahneman received the Nobel Prize in Economic Sciences as a result of the creation and development of the theory. Therefore the prospect theory is considered to be more suitable compared to the previously accepted theory, the expected utility theory. Following the prospect theory, researchers have utilized it to describe individual but also corporate management decision making when faced with risk. In this thesis the authors will focus on the latter. Despite the prospect theory being a well-accepted theory, there have been several critics due to its limitations and Audia and Greve (2006) are one of these critics. Their study suggested that corporations under threat, i.e. small firms with low returns, act risk averse. The findings of Audia and Greve (2006) violate the prospect theory when considering small firms that have below target returns. They tested the theory on an industry that has the characteristics of having relatively high proportions of tangible assets. Audia and Greve (2006) also proposed that a similar conclusion could be drawn if tested on an industry characterized by having a high level of intangible assets. This thesis examines the applicability of the prospect theory in the Swedish automotive industry and staffing and recruitment industry. The characteristics of the two industries are that the automotive industry has a high proportion of tangible assets and the staffing and recruitment industry has a high level of intangibles. The authors test if the prospect theory can be used to describe the decision making of both industries but also test the theory on small and large firms. Following the results of this paper we show that the prospect theory can be applied to the Swedish automotive industry and staffing and recruitment industry, characterized by having high levels of tangible assets and intangible assets respectively. The theory can also be used to explain decision making under risk for small firms within both industries and large firms within the automotive industry. Even though the prospect theory was originally tested on individuals, the conclusion can be drawn that the prospect theory once again prevails as an explanation of the decision making in the management of corporations. It can describe the decision making of firms in the two industries having characteristics of different asset tangibility and for firms of different size.

Esta pesquisa examinou se a tomada de decisão dos agentes considera os custos e benefícios do planejamento tributário e se boas práticas de governança corporativa reduzem o engajamento dos gestores na prática de planejamento tributário. Adicionalmente, investigouse a relação entre utilidade esperada/valor esperado do planejamento tributário e o endividamento das empresas. Para mensurar se a prática do planejamento tributário tem relação com a maximização da utilidade esperada do agente (maximização dos benefícios gerados), desenvolveu-se um modelo baseado na proposta de Alligham e Sandmo (1972), segundo a qual, a prática do planejamento tributário está relacionada a uma análise econômica dos custos e benefícios desta ação. As premissas utilizadas foram o período de 13 anos de discussão administrativa e judicial do débito tributário, correção do débito tributário, custo de capital de terceiros e encargos de 100% do valor do tributo (multa, juros e honorários advocatícios). Os resultados foram expandidos para diversos cenários de tempo (períodos de 8, 13 e 18 anos), encargos de 50%, 100% e 150% e variável dependente calculada com base nos valores registrados como passivos contingentes (notas explicativas), contingências fiscais prováveis (reconhecida nas demonstrações contábeis), e soma de ambas. Além disso, as análises foram feitas em nível (nominal escalonada pelo ativo total) e logaritmo. A amostra pesquisa foi composta pelas empresas brasileiras de capital aberto que fizeram parte do índice IBrX100 e abrange o período de 2008 a 2015. As análises empíricas confirmam que na maior parte dos casos a utilidade esperada do agente (valor esperado) é positiva, indicando que a tomada de decisão sobre a prática de planejamento tributário é fruto da maximização da utilidade esperada do agente, o que pode explicar os elevados números registrados de provisões e passivos contingentes nas demonstrações financeiras e notas explicativas das empresas. Além disso, identificou-se que regras rígidas de governança corporativa possuem correlação negativa com a utilidade esperada do agente, podendo ser considerada como um desincentivo à prática de planejamento tributário. Identificou-se ainda, que a variável endividamento apresentou correlação negativa com a utilidade esperada ou o valor esperado do planejamento tributário. A utilização de um modelo para avaliação da utilidade esperada/valor esperado do planejamento tributário pode contribuir para a melhor compreensão desse fenômeno e para a proposição futuras de políticas públicas. / This study examined whether the decision-making of the agents considers the costs and benefits of tax avoidance and if good practices of corporate governance reduces the engagement of managers in the practice of tax avoidance. Additionally, it was investigated the relationship between the expected utility/expected value of tax avoidance and the indebtedness of the companies. In order to measure if the practice of tax avoidance is related to the maximization of the expected utility of the agent (maximization of the benefits generated), a model based on the proposal of Alligham and Sandmo (1972) was developed, according to which the practice of tax avoidance is related to an economic analysis of the costs and benefits. The premises used were the period of time of 13 years of administrative and judicial lawsuit, correction of the tax debt, cost of debt and charges of 100% (fine, interest and legal fees) over the tax unpaid. The results were expanded to several time scenarios (periods of 8, 13 and 18 years), charges of 50%, 100% and 150% and dependent variable calculated based on the amounts recorded as contingent liabilities (footnotes), tax provisions (financial statements), and sum of both. Furthermore, the analyses were done at level (nominal staggered by total assets) and logarithm. The research sample was composed of Brazilian publicly traded companies that were part of the IBrX100 index and covers the period between 2008 and 2015. Empirical analysis confirms that in most of the cases, the expected utility of the agent (expected value) is positive, indicating that the decision on the tax avoidance practice is a result of the maximization of the agent\'s expected utility, which may explain the large numbers of provisions and contingent liabilities in the financial statements and the footnotes of the companies. In addition, it was identified that rigid rules of corporate governance practices has a negative correlation with the expected utility of the agent, and can be considered as a disincentive to the practice of tax avoidance. It was also identified that the indebtedness variable presented a negative correlation with the expected utility or the expected value of the tax avoidance. The use of a model to evaluate the expected utility/expected value of tax avoidance can contribute to a better understanding of this phenomenon and to the future proposition of public policies.

Esta pesquisa examinou se a tomada de decisão dos agentes considera os custos e benefícios do planejamento tributário e se boas práticas de governança corporativa reduzem o engajamento dos gestores na prática de planejamento tributário. Adicionalmente, investigouse a relação entre utilidade esperada/valor esperado do planejamento tributário e o endividamento das empresas. Para mensurar se a prática do planejamento tributário tem relação com a maximização da utilidade esperada do agente (maximização dos benefícios gerados), desenvolveu-se um modelo baseado na proposta de Alligham e Sandmo (1972), segundo a qual, a prática do planejamento tributário está relacionada a uma análise econômica dos custos e benefícios desta ação. As premissas utilizadas foram o período de 13 anos de discussão administrativa e judicial do débito tributário, correção do débito tributário, custo de capital de terceiros e encargos de 100% do valor do tributo (multa, juros e honorários advocatícios). Os resultados foram expandidos para diversos cenários de tempo (períodos de 8, 13 e 18 anos), encargos de 50%, 100% e 150% e variável dependente calculada com base nos valores registrados como passivos contingentes (notas explicativas), contingências fiscais prováveis (reconhecida nas demonstrações contábeis), e soma de ambas. Além disso, as análises foram feitas em nível (nominal escalonada pelo ativo total) e logaritmo. A amostra pesquisa foi composta pelas empresas brasileiras de capital aberto que fizeram parte do índice IBrX100 e abrange o período de 2008 a 2015. As análises empíricas confirmam que na maior parte dos casos a utilidade esperada do agente (valor esperado) é positiva, indicando que a tomada de decisão sobre a prática de planejamento tributário é fruto da maximização da utilidade esperada do agente, o que pode explicar os elevados números registrados de provisões e passivos contingentes nas demonstrações financeiras e notas explicativas das empresas. Além disso, identificou-se que regras rígidas de governança corporativa possuem correlação negativa com a utilidade esperada do agente, podendo ser considerada como um desincentivo à prática de planejamento tributário. Identificou-se ainda, que a variável endividamento apresentou correlação negativa com a utilidade esperada ou o valor esperado do planejamento tributário. A utilização de um modelo para avaliação da utilidade esperada/valor esperado do planejamento tributário pode contribuir para a melhor compreensão desse fenômeno e para a proposição futuras de políticas públicas. / This study examined whether the decision-making of the agents considers the costs and benefits of tax avoidance and if good practices of corporate governance reduces the engagement of managers in the practice of tax avoidance. Additionally, it was investigated the relationship between the expected utility/expected value of tax avoidance and the indebtedness of the companies. In order to measure if the practice of tax avoidance is related to the maximization of the expected utility of the agent (maximization of the benefits generated), a model based on the proposal of Alligham and Sandmo (1972) was developed, according to which the practice of tax avoidance is related to an economic analysis of the costs and benefits. The premises used were the period of time of 13 years of administrative and judicial lawsuit, correction of the tax debt, cost of debt and charges of 100% (fine, interest and legal fees) over the tax unpaid. The results were expanded to several time scenarios (periods of 8, 13 and 18 years), charges of 50%, 100% and 150% and dependent variable calculated based on the amounts recorded as contingent liabilities (footnotes), tax provisions (financial statements), and sum of both. Furthermore, the analyses were done at level (nominal staggered by total assets) and logarithm. The research sample was composed of Brazilian publicly traded companies that were part of the IBrX100 index and covers the period between 2008 and 2015. Empirical analysis confirms that in most of the cases, the expected utility of the agent (expected value) is positive, indicating that the decision on the tax avoidance practice is a result of the maximization of the agent\'s expected utility, which may explain the large numbers of provisions and contingent liabilities in the financial statements and the footnotes of the companies. In addition, it was identified that rigid rules of corporate governance practices has a negative correlation with the expected utility of the agent, and can be considered as a disincentive to the practice of tax avoidance. It was also identified that the indebtedness variable presented a negative correlation with the expected utility or the expected value of the tax avoidance. The use of a model to evaluate the expected utility/expected value of tax avoidance can contribute to a better understanding of this phenomenon and to the future proposition of public policies.

This thesis investigates the choices under risk in the framework of non-expected utility theories. One of the key contributions of this thesis is providing an approach that allows for a complete characterisation of Cumulative Prospect Theory (CPT) preferences without prior knowledge of the reference point. The location of the reference point that separates gains from losses is derived endogenously, thus, without any additional assumptions on the decision maker’s risk behaviour. This is different to the convention used in the literature, according to which, the reference point is preselected. The problem arising from imposing the location of the reference point is that the underlying preference conditions might not be alligned with the predictions made by the model. Consequently, it is difficult to verify such a model or to test it empirically. The present contribution offers a set of normatively and descriptively appealing preference conditions, which enable the elicitation of the reference point from the decision maker’s behaviour. Since these conditions are derived using objective probabilities, they can also be applied to settings such as health or insurance, where the continuity of the utility function is not required. As a result, the obtained representation theorem is not only the most general foundation for CPT currently available, but it also provides further support for the use of CPT as a modelling tool in decision theory and fi…nance. Another contribution that this thesis can be credited with is an application of rank-dependent utility theory (RDU) to the problem of insurance demand in the monopoly market affected by adverse selection. The present approach extends the classical model of Stiglitz (1977) by accounting for an additional component of heterogeneity among consumers, the heterogeneity in risk perception. Speci…fically, consumers employ distinctive probability weighting functions to assess the likelihood of risky events. This aspect of consumers’' behaviour highlights the importance that the probabilistic risk attitudes within the RDU framework, such as optimism and pessimism, have for the choice of insurance contract. The analysis yields a separating equilibrium, with full insurance for a sufficiently pessimistic decision maker. An important implication of this result is that any low-risk individual who sufficiently overestimates his probability of loss will induce the uninformed insurer to o¤er him full coverage, thereby, affecting the high-risk type adversely. This outcome is consistent with the recent empirical puzzle regarding the correlation between ex-post risk and insurance coverage, according to which, agents with low exposure to risk receive a larger amount of compensation. By providing an explanation of this pattern of individual behaviour, the current work demonstrates that theory and practice of insurance demand can be reconciled to a greater extent. The paper also provides a behavioural rationale for policy intervention in the market with RDU agents, where the initial distortions in contracts due to unobservable risks are aggravated by the non-linear weighting of probability of a risky event.

This thesis aplied tools of economic analysis on situation in poker, where players choose to finish tournament or make a deal and take certain amount of money immediately. Theoretical frame consists of economic theories for decesion under risk and poker literature. Hypotheses are tested with regresion analysis on dataset which I obtain by my own observing. Estimations support hypothesis that players are risk-averze and loss-averze. In bigger tournaments are bigger prizepools and that is the reason, why players in bigger tournament make deals more often. Moreover deal is more likely, when players are approximetly equal skilled in poker.

Background: Since the emergence of Covid-19 has it reaped and created havoc within every segment of society on a national and global scale. The financial market experienced significant declines and losses but some asset items handled the fluctuations better than others. Moreover, since some asset items are associated with different risk levels will various investors with contrasting risk attitude allocate dissimilar proportion of their disposable capital between these alternatives. Especially during low and high levels of economic uncertainty which is related to the volatile market of Covid-19. Although, little to no research has been conducted aimed at understanding how Covid-19 impacted Swedish students asset allocation prior and post the pandemic with different risk profiles.   Purpose: The purpose of this study is to investigate if students with different risk attitudes (risk-preference, risk-neutral and risk-averse) conduct statistically different asset allocation prior and post the Covid-19 pandemic. Furthermore, investigate shifts in asset holdings prior and post the pandemic. Moreover, in order to fill the identified literature gap and add to the current body of knowledge regarding asset allocation and variability concerning risk attitudes since its exclusion of Swedish student’s risk attitudes and impact of Covid-19 on preferable asset items.                                    Method: This investigative study concerns a quantitative survey of 81 different students attending Jönköping University. The survey was structured in a way to uncover whether students with different risk attitudes conduct asset allocation statistically different prior and post the Covid-19 pandemic. Moreover, incorporate sociodemographic factors of students in order to measure its relation to risk attitudes and uncertainty changes. This will be done through non-parametric tests (distribution free) such as the Chi-square, Kruskal-Wallis and Bonferroni adjusted p-value approach. The data is later discussed and interpreted through various academic sources and in the context of the frame of reference (expected utility theory).                              Conclusion: The impact of Covid-19 resulted into increased asset allocation of less risky and “safe” asset in order to deal with the declining stock market and future economic uncertainty. The study also suggest that students liquidated some of their current/fixed deposits and re-invested their disposable capital into a more conservative money management strategy, which was a continuous identified pattern.  Furthermore, the results indicate that students with different risk attitudes conduct significantly different asset allocation concerning commercial insurance, stocks/funds and various bond types prior to Covid-19. However, post the eruption has the statistical identified differences in bonds asset allocation reduced which refers to that the statistical power and dissimilar allocated proportion amongst asset items has diminished. Further multiple comparison reinsures this conclusion. Thusly, the study implies that the differences between asset allocation and student risk profiles are diminished post Covid-19 and therefore students perceived and allocated more similar capital proportions into various asset items. Hence answer the initial stated research question and empirically state that risk attitude of students impact how they conduct asset allocation prior to and to a lesser extent post Covid-19