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Risk apportionment and multiply monotone targets

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  • Denuit, Michel M.

Abstract

This short note proposes a new interpretation of risk apportionment, in the target-oriented decision-making model. It is shown that these risk attitudes translate into smaller targets, expressing the decision maker’s conservative behavior.

Suggested Citation

  • Denuit, Michel M., 2018. "Risk apportionment and multiply monotone targets," Mathematical Social Sciences, Elsevier, vol. 92(C), pages 74-77.
    • Handle: RePEc:eee:matsoc:v:92:y:2018:i:c:p:74-77
    DOI: 10.1016/j.mathsocsci.2017.09.008
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    References listed on IDEAS

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    1. Kimball, Miles S, 1990. "Precautionary Saving in the Small and in the Large," Econometrica, Econometric Society, vol. 58(1), pages 53-73, January.
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    7. Louis Eeckhoudt & Harris Schlesinger, 2006. "Putting Risk in Its Proper Place," American Economic Review, American Economic Association, vol. 96(1), pages 280-289, March.
    8. Denuit, Michel & Rey, Béatrice, 2013. "Another look at risk apportionment," Journal of Mathematical Economics, Elsevier, vol. 49(4), pages 335-343.
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    14. Denuit, Michel & Rey, Béatrice, 2010. "Prudence, temperance, edginess, and risk apportionment as decreasing sensitivity to detrimental changes," Mathematical Social Sciences, Elsevier, vol. 60(2), pages 137-143, September.
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