David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
Theory and Decision 55 (1):59-69 (2003)
This paper investigates the link between the total bivariate risk premium and the sum of partial bivariate risk premia. Whereas in the case of small risks, the non interaction between risks is a sufficient condition to obtain the equality between the total risk premium and the sum of partial risk premia, the paper shows that this condition is not sufficient for large risks. The non interaction between risks occurs in two cases: if risks are independent or if individual's marginal utility of one good is independent of the endowment in the other. Without restriction on the utility function, none of these two conditions is sufficient for large risks. If attention is restricted to preferences that exhibit constant absolute risk aversion, the non variability of the marginal utility of good one with respect to variations in endowment in the other remains a sufficient condition, while the independence between risks does not
|Keywords||bivariate risk premium correlated risks cross derivatives multivariate risk aversion partial bivariate risk premium|
No categories specified
(categorize this paper)
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
No references found.
Citations of this work BETA
No citations found.
Similar books and articles
Christophe Courbage (2001). On Bivariate Risk Premia. Theory and Decision 50 (1):29-34.
Paola Ferretti, Temporal Risk Aversion: What Determines the Attitude of the Decision Maker? The Case of the Buyer Decision Maker.
Sven Ove Hansson (2004). Weighing Risks and Benefits. Topoi 23 (2):145-152.
Whitney Davis & Harry J. van Buren Iii (2007). Stakeholder Risk as Experienced by Non-Shareholder Stakeholders. Proceedings of the International Association for Business and Society 18:431-436.
Karl Mosler (1997). De Minimis and Equity in Risk. Theory and Decision 42 (3):215-233.
Thomas Kenner & Karl P. Pfeiffer (1986). The Risk Concept in Medicine — Statistical and Epidemiological Aspects: A Case Report for Applied Mathematics in Cardiology. Theoretical Medicine and Bioethics 7 (3).
Francisco J. Vázquez & Richard Watt (2002). The Price of Risk with Incomplete Knowledge on the Utility Function. Theory and Decision 53 (3):271-287.
Per Sandin (2005). Naturalness and de Minimis Risk. Environmental Ethics 27 (2):191-200.
Paul Weirich (2001). Risk's Place in Decision Rules. Synthese 126 (3):427 - 441.
Béatrice Rey (2003). A Note on Optimal Insurance in the Presence of a Nonpecuniary Background Risk. Theory and Decision 54 (1):73-83.
Sven Ove Hansson (2006). Economic (Ir)Rationality in Risk Analysis. Economics and Philosophy 22 (2):231-241.
Harrell W. Chesson & W. Kip Viscusi (2003). Commonalities in Time and Ambiguity Aversion for Long-Term Risks. Theory and Decision 54 (1):57-71.
Kristin Shrader-Frechette (1985). Technological Risk and Small Probabilities. Journal of Business Ethics 4 (6):431 - 445.
John T. Sanders (1996). Risk and Value. A.S.V.I. News 1996 (Spring):4-5.
Added to index2010-09-02
Total downloads3 ( #324,424 of 1,413,485 )
Recent downloads (6 months)1 ( #155,015 of 1,413,485 )
How can I increase my downloads?