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
Suggested Citation: Suggested Citation
Eeckhoudt, Louis and Schlesinger, Harris and Tsetlin, Ilia, Risk Apportionment and Stochastic Dominance (July 5, 2007). INSEAD Business School Research Paper No. 2007/45/DS. Available at SSRN: https://ssrn.com/abstract=1021947 or http://dx.doi.org/10.2139/ssrn.1021947