Diffidence Theorem and State Dependent Preferences
Gollier and Kimball (1994, 1996) have developed a standard technique based on the diffidence theorem. This theorem provides a very simple instrument to solve relatively sophisticated problems when preferences are state independent. The object of this article is to show that their theorem is also very useful to derive significant results with state dependent preferences.
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|Date of creation:||1997|
|Date of revision:|
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