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Proper and Standard Risk Aversion in Two-Moment Decision Models

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Author Info
Fatma Lajeri-Chaherli ()

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Abstract

For linear distribution classes, mean-variance and expected utility specifications have been shown in the literature to be fully compatible when studying the concepts of risk aversion, prudence, risk vulnerability and temperance. This paper shows that such compatibility does hold for the concept of standard risk aversion but not for the concepts of proper risk aversion and proper prudence. Copyright Springer 2004

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File URL: http://hdl.handle.net/10.1007/s11238-005-0285-9
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Publisher Info
Article provided by Springer in its journal Theory and Decision.

Volume (Year): 57 (2004)
Issue (Month): 3 (November)
Pages: 213-225
Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Handle: RePEc:kap:theord:v:57:y:2004:i:3:p:213-225

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Web page: http://www.springerlink.com/link.asp?id=100341

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Related research
Keywords: mean-variance preferences proper risk aversion standard risk aversion

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