Probabilistic risk aversion with an arbitrary outcome set
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Blavatskyy, P.R. (2011) Probabilistic risk aversion with an arbitrary outcome set. Economics Letters, 112 (1). pp. 34-37.
Link to Published Version: http://dx.doi.org/10.1016/j.econlet.2011.03.004
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Abstract
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.
| Item Type: | Journal Article |
|---|---|
| Publisher: | Elsevier |
| Copyright: | © 2011 Elsevier B.V. |
| URI: | http://researchrepository.murdoch.edu.au/id/eprint/30538 |
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