Standard risk aversion and efficient risk sharing
نویسندگان
چکیده
منابع مشابه
Representative consumer's risk aversion and efficient risk-sharing rules
We study the representative consumer’s risk attitude and efficient risk-sharing rules in a singleperiod, single-good economy in which consumers have homogeneous probabilistic beliefs but heterogeneous risk attitudes. We prove that if all consumers have convex absolute risk tolerance, so must the representative consumer. We also identify a relationship between the curvature of an individual cons...
متن کاملRisk Aversion and Engagement in the Sharing Economy
The sharing economy is a new online community that has important implications for offline behavior. This study evaluates whether engagement in the sharing economy is associated with an actor’s aversion to risk. Using a web-based survey and a field experiment, we apply an adaptation of Holt and Laury’s (2002) risk lottery game to a representative sample of sharing economy participants. We find t...
متن کاملInequality aversion and risk aversion
This note shows that for two inequality averse social welfare functions, if one is more inequality averse than the other, the household preference induced by optimally allocating aggregate bundles according to this social welfare function is more risk averse than the other. We present examples showing that this comparative static can be reversed if inequality aversion is dropped. We show that t...
متن کاملVisual analog scales, standard gambles, and relative risk aversion.
BACKGROUND It has been argued that visual analog scales (VASs) elicit an individual's measurable value function. The theoretical link between an individual's measurable value function v(.) and his or her von Neumann-Morgenstem utility function u(.) appears to provide a justification for transforming VAS scores into standard gamble (SG) utilities. However, VAS scores have been found to be subjec...
متن کاملSimilarities between Greater Risk Aversion and Greater Downside Risk Aversion
This paper characterizes downside risk aversion in a simple and intuitive manner. The characterization highlights certain features of downside risk aversion that are common with traditional risk aversion in regards the comparative statics of risk-free wealth. Also, using this characterization one can simplify considerably a theorem by Jindapon (2010) relating to greater downside risk aversion a...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Economics Letters
سال: 2018
ISSN: 0165-1765
DOI: 10.1016/j.econlet.2018.09.005