Econometrica: Sep 1970, Volume 38, Issue 5
Another Type of Risk Aversion
Emmett Keeler, Richard ZeckhauserThis 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.
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