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De Finetti On Risk Aversion

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  • Kadane, Joseph B.
  • Bellone, Gaia

Abstract

According to Mark Rubinstein (2006) ‘In 1952, anticipating Kenneth Arrow and John Pratt by over a decade, he [de Finetti] formulated the notion of absolute risk aversion, used it in connection with risk premia for small bets, and discussed the special case of constant absolute risk aversion.’ The purpose of this note is to ascertain the extent to which this is true, and at the same time, to correct certain minor errors that appear in de Finetti's work.

Suggested Citation

  • Kadane, Joseph B. & Bellone, Gaia, 2009. "De Finetti On Risk Aversion," Economics and Philosophy, Cambridge University Press, vol. 25(2), pages 153-159, July.
    • Handle: RePEc:cup:ecnphi:v:25:y:2009:i:02:p:153-159_99
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