Risk Apportionment and Stochastic Dominance
24 Pages Posted: 16 Oct 2007
Date Written: July 5, 2007
This paper characterizes higher order risk effects, such as prudence and temperance, via preferences that partially order a set of simple 50-50 lotteries.
Keywords: Downside Risk, Precautionary Savings, Prudence, Risk Apportionment
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