This paper uses duality to elaborate Slutzky equations of risks in quasi-linear decision models extended by independent background risks. Wealth, substitution and total effects are characterized in terms of mean-variance preferences. It is shown that both Pratt and Zeckhauser’s proper risk aversion and Kimball’s standard risk aversion are sufficient for negative substitution effects.

We develop a Priestley-style duality theory for different classes of algebras having a bilattice reduct. A similar investigation has already been realized by B. Mobasher, D. Pigozzi, G. Slutzki and G. Voutsadakis, but only from an abstract category-theoretic point of view. In the present work we are instead interested in a concrete study of the topological spaces that correspond to bilattices and some related algebras that are obtained through expansions of the algebraic language.