Probabilistic risk aversion with an arbitrary outcome set
Blavatskyy, P.R. (2011) Probabilistic risk aversion with an arbitrary outcome set. Economics Letters, 112 (1). pp. 34-37.
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This paper analyzes risk aversion when outcomes/consequences may not be measurable in monetary terms and people have fuzzy preferences over lotteries, i.e. they choose in a probabilistic manner. The paper shows that comparative risk aversion is well defined in a constant error/tremble model but not in a strong utility model.
|Publication Type:||Journal Article|
|Copyright:||© 2011 Elsevier B.V.|
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