Calibration Results for Non-Expected Utility Theories
AbstractRabin proved that a low level of risk aversion with respect to small gambles leads to a high, and absurd, level of risk aversion with respect to large gambles. Rabin’s arguments strongly depend on expected utility theory, but we show that similar arguments apply to general non-expected utility theories.
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Bibliographic InfoPaper provided by Boston College Department of Economics in its series Boston College Working Papers in Economics with number 682.
Date of creation: 18 May 2008
Date of revision:
Publication status: published, Econometrica, 76:5, 1143-1166, 2008.
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risk aversion; betweenness; calibration; non-expected utility theories;
Other versions of this item:
- Zvi Safra & Uzi Segal, 2008. "Calibration Results for Non-Expected Utility Theories," Econometrica, Econometric Society, vol. 76(5), pages 1143-1166, 09.
- Zvi Safra & Uzi Segal, 2006. "Calibration Results for Non-Expected Utility Theories," Boston College Working Papers in Economics 645, Boston College Department of Economics.
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