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Probabilistic risk aversion with an arbitrary outcome set
Journal article   Peer reviewed

Probabilistic risk aversion with an arbitrary outcome set

P.R. Blavatskyy
Economics Letters, Vol.112(1), pp.34-37
2011
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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.

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Citation topics
6 Social Sciences
6.122 Economic Theory
6.122.1287 Risk Preferences
Web Of Science research areas
Economics
ESI research areas
Economics & Business
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