Econometrica: Sep 1970, Volume 38, Issue 5

Another Type of Risk Aversion

https://doi.org/0012-9682(197009)38:5<661:ATORA>2.0.CO;2-D
p. 661-665

Emmett Keeler, Richard Zeckhauser

This paper introduces the concept of size-of-risk aversion, discusses its mathematical properties, and relates it to other measures of risk aversion. Decision makers whose utility functions display size-of-risk aversion will pay greater percentage premiums over fair actuarial value to insure against risks of greater magnitude.
Institutional Access
Log In To View Full Content

Back