Even (mixed) risk lovers are prudent
AbstractThe purpose of this note is to analyze properties of the risk lovers? utility function beyond the positive sign of its second order derivative. We show that??contrarily to a priori beliefs??risk lovers are prudent and are willing to accumulate precautionary savings.
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Bibliographic InfoPaper provided by IESEG School of Management in its series Working Papers with number 2011-ECO-05.
Length: 10 pages
Date of creation: Oct 2011
Date of revision:
Other versions of this item:
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-17 (All new papers)
- NEP-BEC-2012-04-17 (Business Economics)
- NEP-MIC-2012-04-17 (Microeconomics)
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