Comparisons of risk aversion, with an application to bargaining

Authors
  • P.P. Wakker
  • H.J.M. Peters
  • T.B.P.L. van Riel
Publication date 1986
Journal Methods of Operations Research
Volume | Issue number 54
Pages (from-to) 307-320
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
Abstract Key results of Pratt (1964), and Arrow (1971), Yaari (1969), and Kihlstrom & Mirman (1974) on the comparability of the risk aversion of different decision makers, are extended to completely general consequence sets, without any restriction on the utility functions, for decision making under risk, and to topologically connected consequence spaces with continuous utility functions, for decision making under uncertainty. An application to bargaining theory is given.
Document type Article
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