At the end of February, this year's dialogue forum on the BMBF funding guideline "Climate Protection and Finance" (KlimFi) took place in Frankfurt, where all projects presented their current research results. As a cornerstone of the large project, we, the University of Münster, together with our partners from SAFE Frankfurt, Climate & Company, and Ruhr University Bochum, presented the latest findings within the framework of the project "Climlabels - Transformation Labels in Climate Finance".

We investigate dynamic risk decisions according to the salience theory by deriving hypotheses on dynamic risk decisions theoretically and then experimentally testing them. The results support all hypotheses. We also observe a strong correlation between static and dynamic decisions, suggesting that the salience theory can coherently explain risk decisions in both static and dynamic contexts. Our findings contribute to understanding when people acquire and sell financial products, how they behave in gambling, and when they enter or retire from the labor market.

Models and experiments in decision theory usually use simple risks with only a few possible outcomes. Markus Dertwinkel-Kalt from the University of Münster, Sebastian Ebert from the University of Heidelberg, and Mats Köster from the Central European University investigate the correlation of such simple risks and discuss their relevance for a variety of economic and financial theoretical applications such as testing behavioral economic models, learning from correlated signals, portfolio selection, or even "rational inattention" and "Bayesian persuasion".