Time, Utility, Risk: Size-of-Risk Attitude and Distinct Decision Makers
Ca Foscari University of Venice - Department of Economics
November 29, 2009
In the context of time varying utility of wealth, this paper generalizes the proposed analysis of temporal risk aversion in the case of a Decision Maker who acts as a Buyer in order to study a different notion of risk aversion: the concept of size-of-risk aversion. Sufficient conditions ensuring existence and regularity of the definitions proposed in (Ferretti, 2008) are presented; temporal and instantaneous size-of-risk aversion definitions are given and a sufficient condition ensuring such a behavior is obtained.
Number of Pages in PDF File: 11
Keywords: temporal utility, Buyer-Seller viewpoints, size-of-risk attitude
JEL Classification: D81working papers series
Date posted: December 2, 2009
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