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Proper Risk Behavior

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Author Info
Dachraoui, K.
Eeeckhoudt, L.
Godfroid.P.
Abstract

How does risk aversion affect choices when expenses improve probabilities? Attempts tp answer this question in the literature found an endogenous switching probability. In this paper we introduce a new concept of comparative attitude to risk, namely proper risk behavior and determine 1/2 as the threshold propbability over wich a more proper risk behavior agent becomes gambler.

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Publisher Info
Paper provided by Ecole des Hautes Etudes Commerciales de Montreal-Chaire de gestion des risques. in its series Ecole des Hautes Etudes Commerciales de Montreal- with number 99-01.

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Length: 23 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:etcori:99-01

Contact details of provider:
Postal: Canada; ECOLE DES HAUTES ETUDES COMMERCIALES(H.E.C.),3000, chemin de la Cote-Sainte-Catherine. Montreal (Quebec) Canada H3T 2A7.
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Web page: http://www.hec.ca/
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Related research
Keywords: RISK AVERSION;

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Find related papers by JEL classification:
D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

Cited by:
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  1. K. Dachraoui & G. Dionne, 2001. "Stochastic Dominance and Optimal Portfolio," THEMA Working Papers 2001-01, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise. [Downloadable!]
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This page was last updated on 2009-12-16.


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