Self-Fulfilling Risk Panics: An Expected Utility Framework
نویسندگان
چکیده
منابع مشابه
Expected Utility and Risk Aversion
This reading describes how people’s aversion to risk affects the decisions they make about investment. Basically, the concepts used to do this analysis emerge naturally when people have expected utility preferences, but not otherwise. So, it illustrates one important way that expected utility is applied. This analysis also makes it possible to illustrate how to do comparative statics. Comparati...
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In this paper, it is discussed a framework combining traditional expected utility and weighted entropy (EU-WE)—also named mean contributive value index—which may be conceived as a decision aiding procedure, or a heuristic device generating compositional scenarios, based on information theory concepts, namely weighted entropy. New proofs concerning the maximum value of the index and the evaluati...
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We provide a condition for rationalizability by risk-averse expected utility preference in a demand-based framework with multiple commodities, which is a UNCAF statement in the sense of Chambers et al. (2014). Our test can be viewed as a natural counterpart of a classical test of expected utility, due to Fishburn (1975), in a demand setting.
متن کاملA Theory of Risk without Expected Utility
This paper challenges the use of expected value concepts including expected return, expected utility, non-expected utility and weighted utility in the study of risk. It proves that all such concepts must lead to the rejection of any gambling or insurance proposal. Consequently, theories applying them become futile. Instead, this paper seeks to explain the risky behaviors by the Central Limit Th...
متن کاملBackground risk in generalized expected utility theory
The response of risk-averse decision-makers with expected-utility preferences to the addition of independent background risk has been the subject of a substantial literature. Important contributions include those of Pratt and Zeckhauser (1987); Pratt (1988); Kimball (1993); Gollier and Pratt (1996). The literature has recently been summarized and extended by Gollier (2000). The primary result o...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2020
ISSN: 1556-5068
DOI: 10.2139/ssrn.3751813