Are Risk Averters Averse to Risky Gambles?∗
نویسنده
چکیده
This paper defines local aversion to a risk index. I show that the local aversion to the Aumann and Serrano [2008] index of riskiness coincides with absolute risk aversion, and that the same applies for the Foster and Hart [2009] measure of riskiness. Using this “local consistency” I offer a new approach for axiomatizing the Aumann and Serrano index of riskiness and present other applications of this approach for relative risk aversion, “tardiness” (time preferences) and the appeal of information.
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Neural correlates of anticipation risk reflect risk preferences.
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