Abstract
The present note first discusses the concept of s-convex pain functions in decision theory. Then, the economic behavior of an agent with such a pain function is represented through the comparison of some recursive lotteries.
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Denuit, M., Lefèvre, C. & Scarsini, M. On S-Convexity and Risk Aversion. Theory and Decision 50, 239–248 (2001). https://doi.org/10.1023/A:1010336203373
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DOI: https://doi.org/10.1023/A:1010336203373