Results for 'Risk aversion'

1000+ found
Order:
  1. Is Risk Aversion Irrational?H. Orri Stefánsson - forthcoming - Synthese:1-13.
    A moderately risk averse person may turn down a 50/50 gamble that either results in her winning $200 or losing $100. Such behaviour seems rational if, for instance, the pain of losing $100 is felt more strongly than the joy of winning $200. The aim of this paper is to examine an influential argument that some have interpreted as showing that such moderate risk aversion is irrational. After presenting an axiomatic argument that I take to be the (...)
    Direct download (3 more)  
     
    Export citation  
     
    Bookmark  
  2.  51
    Risk Aversion Elicitation: Reconciling Tractability and Bias Minimization. [REVIEW]Mohammed Abdellaoui, Ahmed Driouchi & Olivier L’Haridon - 2011 - Theory and Decision 71 (1):63-80.
    Risk attitude is known to be a key determinant of various economic and financial choices. Behavioral studies that aim to evaluate the role of risk attitudes in contexts of this type, therefore, require tools for measuring individual risk tolerance. Recent developments in decision theory provide such tools. However, the methods available can be time consuming. As a result, some practitioners might have an incentive to prefer “fast and frugal” methods to clean but more costly methods. In this (...)
    Direct download (3 more)  
     
    Export citation  
     
    Bookmark   3 citations  
  3.  60
    Valuing Environmental Costs and Benefits in an Uncertain Future: Risk Aversion and Discounting.Fabien Medvecky - 2012 - Erasmus Journal for Philosophy and Economics 5 (1):1-1.
    A central point of debate over environmental policies concerns how future costs and benefits should be assessed. The most commonly used method for assessing the value of future costs and benefits is economic discounting. One often-cited justification for discounting is uncertainty. More specifically, it is risk aversion coupled with the expectation that future prospects are more risky. In this paper I argue that there are at least two reasons for disputing the use of risk aversion as (...)
    Direct download (4 more)  
     
    Export citation  
     
    Bookmark   2 citations  
  4.  72
    Decreasing Higher-Order Absolute Risk Aversion and Higher-Degree Stochastic Dominance.Michel Denuit & Liqun Liu - 2014 - Theory and Decision 76 (2):287-295.
    Fishburn and Vickson showed that, when applied to random alternatives with an equal mean, 3rd-degree and decreasing absolute risk aversion stochastic dominances represent equivalent rules. The present paper generalizes this result to higher degrees. Specifically, higher-degree stochastic dominance rules and common preference by all decision makers with decreasing higher-order absolute risk aversion are shown to coincide under appropriate constraints on the respective moments of the random variables to be compared.
    Direct download (6 more)  
     
    Export citation  
     
    Bookmark  
  5.  37
    On the Effect of Risk Aversion in Bimatrix Games.Caroline Berden & Hans Peters - 2006 - Theory and Decision 60 (4):359-370.
    Nash equilibria with identical supports are compared for bimatrix games that are different with respect to the risk aversion of player 2. For equilibria in 2× 2-bimatrix games and for equilibria with efficient supports in coordination games it is established for which cases increased risk aversion of player 2 benefits or hurts player 2.
    No categories
    Direct download (4 more)  
     
    Export citation  
     
    Bookmark   1 citation  
  6.  63
    Risk Aversion in Expected Intertemporal Discounted Utilities Bandit Problems.Jean-Philippe Chancelier, Michel De Lara & André de Palma - 2009 - Theory and Decision 67 (4):433-440.
    We consider a situation where an individual is facing an uncertain situation, but may costly alter his knowledge of the uncertainties. We study in this context how risk aversion may modify the individual search behavior. We consider a one-armed bandit problem (where one arm is safe and the other is risky) and study how the agent risk aversion can change the sequence of arms selected. The main result is that when the utility function is more concave, (...)
    Direct download (4 more)  
     
    Export citation  
     
    Bookmark  
  7.  34
    Proper and Standard Risk Aversion in Two-Moment Decision Models.Fatma Lajeri-Chaherli - 2004 - Theory and Decision 57 (3):213-225.
    For linear distribution classes, mean-variance and expected utility specifications have been shown in the literature to be fully compatible when studying the concepts of risk aversion, prudence, risk vulnerability and temperance. This paper shows that such compatibility does hold for the concept of standard risk aversion but not for the concepts of proper risk aversion and proper prudence.
    Direct download (3 more)  
     
    Export citation  
     
    Bookmark   1 citation  
  8.  89
    Measuring Risk Aversion with Lists: A New Bias. [REVIEW]Antoni Bosch-Domènech & Joaquim Silvestre - 2013 - Theory and Decision 75 (4):465-496.
    Various experimental procedures aimed at measuring individual risk aversion involve a list of pairs of alternative prospects. We first study the widely used method by Holt and Laury :1644–1655, 2002), for which we find that the removal of some items from the lists yields a systematic decrease in risk aversion and scrambles the ranking of individuals by risk aversion. This bias, that we call embedding bias, is quite distinct from other confounds that have been (...)
    Direct download (6 more)  
     
    Export citation  
     
    Bookmark  
  9.  58
    Positivity of Bid-Ask Spreads and Symmetrical Monotone Risk Aversion.Moez Abouda & Alain Chateauneuf - 2002 - Theory and Decision 52 (2):149-170.
    A usual argument in finance refers to no arbitrage opportunities for the positivity of the bid-ask spread. Here we follow the decision theory approach and show that if positivity of the bid-ask spread is identified with strong risk aversion for an expected utility market-maker, this is no longer true for a rank-dependent expected utility one. For such a decision-maker only a very weak form of risk aversion is required, a result which seems more in accordance with (...)
    Direct download (3 more)  
     
    Export citation  
     
    Bookmark  
  10.  28
    Benchmark Values for Higher Order Coefficients of Relative Risk Aversion.Michel Denuit & Béatrice Rey - 2014 - Theory and Decision 76 (1):81-94.
    The existing literature on savings, insurance, and portfolio choices under risk has revealed that quite often comparative statics results depend, among other things, upon the values of the coefficients of relative risk aversion and relative prudence. More specifically the benchmark values for these coefficients are, respectively, one and two. Recently, several papers investigated constraints on the higher degree extensions of the coefficients of relative risk aversion and of relative prudence. The present work provides a unified (...)
    No categories
    Direct download (3 more)  
     
    Export citation  
     
    Bookmark  
  11.  6
    Health Security and Risk Aversion.Jonathan Herington - 2016 - Bioethics 30 (7):479-489.
    Health security has become a popular way of justifying efforts to control catastrophic threats to public health. Unfortunately, there has been little analysis of the concept of health security, nor the relationship between health security and other potential aims of public health policy. In this paper I develop an account of health security as an aversion to risky policy options. I explore three reasons for thinking risk avoidance is a distinctly worthwhile aim of public health policy: that security (...)
    Direct download (4 more)  
     
    Export citation  
     
    Bookmark   1 citation  
  12. Risk Aversion and the Long Run.Johanna Thoma - 2018 - Ethics 129 (2):230-253.
    This article argues that Lara Buchak’s risk-weighted expected utility theory fails to offer a true alternative to expected utility theory. Under commonly held assumptions about dynamic choice and the framing of decision problems, rational agents are guided by their attitudes to temporally extended courses of action. If so, REU theory makes approximately the same recommendations as expected utility theory. Being more permissive about dynamic choice or framing, however, undermines the theory’s claim to capturing a steady choice disposition in the (...)
    Direct download (7 more)  
     
    Export citation  
     
    Bookmark   4 citations  
  13. What Is Risk Aversion?H. Orri Stefánsson & Richard Bradley - 2019 - British Journal for the Philosophy of Science 70 (1):77-102.
    According to the orthodox treatment of risk preferences in decision theory, they are to be explained in terms of the agent's desires about concrete outcomes. The orthodoxy has been criticised both for conflating two types of attitudes and for committing agents to attitudes that do not seem rationally required. To avoid these problems, it has been suggested that an agent's attitudes to risk should be captured by a risk function that is independent of her utility and probability (...)
    Direct download (6 more)  
     
    Export citation  
     
    Bookmark   5 citations  
  14.  63
    Risk Aversion When Gains Are Likely and Unlikely: Evidence From a Natural Experiment with Large Stakes. [REVIEW]Pavlo Blavatskyy & Ganna Pogrebna - 2008 - Theory and Decision 64 (2-3):395-420.
    In the television show Deal or No Deal a contestant is endowed with a sealed box, which potentially contains a large monetary prize. In the course of the show the contestant learns more information about the distribution of possible monetary prizes inside her box. Consider two groups of contestants, who learned that the chances of their boxes containing a large prize are 20% and 80% correspondingly. Contestants in both groups receive qualitatively similar price offers for selling the content of their (...)
    Direct download (8 more)  
     
    Export citation  
     
    Bookmark   2 citations  
  15.  30
    Mixed Risk Aversion and Preference for Risk Disaggregation: A Story of Moments. [REVIEW]Patrick Roger - 2011 - Theory and Decision 70 (1):27-44.
    In a recent article entitled “Putting Risk in its Proper Place,” Eeckhoudt and Schlesinger (2006) established a theorem linking the sign of the n-th derivative of an agent’s utility function to her preferences among pairs of simple lotteries. We characterize these lotteries and show that, in a given pair, they only differ by their moments of order greater than or equal to n. When the n-th derivative of the utility function is positive (negative) and n is odd (even), the (...)
    Direct download (3 more)  
     
    Export citation  
     
    Bookmark   2 citations  
  16.  65
    Separating Marginal Utility and Probabilistic Risk Aversion.Peter Wakker - 1994 - Theory and Decision 36 (1):1-44.
  17.  34
    The Risk Aversion Measure Without the Independence Axiom.Aldo Montesano - 1988 - Theory and Decision 24 (3):269-288.
  18.  31
    On the Definition of Risk Aversion.Aldo Montesano - 1990 - Theory and Decision 29 (1):53-68.
  19.  28
    Risk and Risk Aversion for State-Dependent Utility.David Kelsey - 1992 - Theory and Decision 33 (1):71-82.
  20.  24
    Part III Mediating Technologies of Risk.Rumour Risk - 2000 - In Barbara Adam, Ulrich Beck & Joost van Loon (eds.), The Risk Society and Beyond: Critical Issues for Social Theory. Sage Publications. pp. 136.
    Direct download  
     
    Export citation  
     
    Bookmark  
  21.  14
    The Emergence of Risk Aversion.George G. Szpiro - 1997 - Complexity 2 (4):31-39.
  22.  21
    The Power of Stereotyping and Confirmation Bias to Overwhelm Accurate Assessment: The Case of Economics, Gender, and Risk Aversion.Julie A. Nelson - 2014 - Journal of Economic Methodology 21 (3):211-231.
    Behavioral research has revealed how normal human cognitive processes can tend to lead us astray. But do these affect economic researchers, ourselves? This article explores the consequences of stereotyping and confirmation bias using a sample of published articles from the economics literature on gender and risk aversion. The results demonstrate that the supposedly ‘robust’ claim that ‘women are more risk averse than men’ is far less empirically supported than has been claimed. The questions of how these cognitive (...)
    Direct download (2 more)  
     
    Export citation  
     
    Bookmark   5 citations  
  23.  13
    Going Boldly Where No One Has Gone Before? How Confidentiality Risk Aversion is Killing Research on Sensitive Topics.Ted Palys & John Lowman - 2010 - Journal of Academic Ethics 8 (4):265-284.
    Bernhard and Young (Journal of Academic Ethics, 7, 175-191, 2009) allege that a myth of confidentiality plagues research in North America because of the absence of statute-based legal protections and the requirements of some REBs to limit confidentiality to the extent permitted by law. In this commentary we describe statute-based protections for research confidentiality available in the United States, clarify the legal situation regarding research confidentiality in Canada, and explain that REBs that require confidentiality to be limited by law are (...)
    Direct download (3 more)  
     
    Export citation  
     
    Bookmark   3 citations  
  24.  21
    Probabilistic Risk Attitudes and Local Risk Aversion: A Paradox.Vjollca Sadiraj - 2014 - Theory and Decision 77 (4):443-454.
    Prominent theories of decision under risk that challenge expected utility theory model risk attitudes at least partly with transformation of probabilities. This paper shows how attributing local risk aversion to attitudes towards probabilities can produce extreme probability distortions that imply paradoxical risk aversion.
    Direct download (2 more)  
     
    Export citation  
     
    Bookmark   1 citation  
  25.  11
    The Relationships Among Consumers’ Ethical Ideology, Risk Aversion and Ethically-Based Distrust of Online Retailers and the Moderating Role of Consumers’ Need for Personal Interaction.Isabel P. Riquelme & Sergio Román - 2014 - Ethics and Information Technology 16 (2):135-155.
    Consumer distrust is only recently beginning to be perceived as an important e-commerce issue and, unlike online trust, the nature and role of distrust is much less established. This study examines the influence of two important consumer characteristics on consumer’s ethically-based distrust of online retailers. Also, the moderating role of consumer’s need for personal contact with sales staff is tested. Results from 409 online consumers confirm that both relativist-based ethical ideology and risk aversion are strongly and positively related (...)
    Direct download (2 more)  
     
    Export citation  
     
    Bookmark   1 citation  
  26.  37
    De Finetti on Risk Aversion: Joseph B. Kadane and Gaia Bellone.Joseph B. Kadane - 2009 - Economics and Philosophy 25 (2):153-159.
    According to Mark Rubinstein ‘In 1952, anticipating Kenneth Arrow and John Pratt by over a decade, he [de Finetti] formulated the notion of absolute risk aversion, used it in connection with risk premia for small bets, and discussed the special case of constant absolute risk aversion.’ The purpose of this note is to ascertain the extent to which this is true, and at the same time, to correct certain minor errors that appear in de Finetti's (...)
    Direct download (8 more)  
     
    Export citation  
     
    Bookmark  
  27.  20
    Small Stakes Risk Aversion in the Laboratory: A Reconsideration.Glenn W. Harrison, Morten I. Lau, Don Ross & J. Todd Swarthout - unknown
    Evidence of risk aversion in laboratory settings over small stakes leads to a priori implausible levels of risk aversion over large stakes under certain assumptions. One core assumption in statements of this calibration puzzle is that small-stakes risk aversion is observed over all levels of wealth, or over a â sufficiently largeâ range of wealth. Although this assumption is viewed as self-evident from the vast experimental literature showing risk aversion over laboratory stakes, (...)
    No categories
    Direct download  
     
    Export citation  
     
    Bookmark  
  28. The 1952 Allais Theory of Choice Involving Risk.of Choice Involving Risk - 1979 - In Maurice Allais & Ole Hagen (eds.), Expected Utility Hypotheses and the Allais Paradox. D. Reidel. pp. 25.
     
    Export citation  
     
    Bookmark  
  29.  23
    Willingness to Pay for Risk Reduction and Risk Aversion Without the Expected Utility Assumption.Eric Langlais - 2005 - Theory and Decision 59 (1):43-50.
    By means of minimal assumptions on the individual preferences, I show that the Willingness To Pay (WTP) for both a FSD and SSD reduction of risk is the sum of a mean effect, a pure risk effect and a wealth effect. As a result, the WTP of a risk-averse decision maker may be lower than the WTP of a risk-neutral one, for a large class of individual preferences’ representation and a large class of risks.
    Direct download (3 more)  
     
    Export citation  
     
    Bookmark  
  30.  82
    A Strong Characterization of Multivariate Risk Aversion.Simon Grant - 1995 - Theory and Decision 38 (2):131-152.
  31.  11
    Female CEOs and Core Earnings Quality: New Evidence on the Ethics Versus Risk-Aversion Puzzle.Alaa Mansour Zalata, Collins Ntim, Ahmed Aboud & Ernest Gyapong - 2019 - Journal of Business Ethics 160 (2):515-534.
    The question of whether females tend to act more ethically or risk-averse compared to males is an interesting ethical puzzle. Using a large sample of US firms over the 1992–2014 period, we investigate the effect that the gender of a chief executive officer has on earnings management using classification shifting. We find that the pre-Sarbanes–Oxley Act period was characterized by high levels of classification shifting by both female and male CEOs, but the magnitude of such practices is, surprisingly, significantly (...)
    Direct download (5 more)  
     
    Export citation  
     
    Bookmark  
  32.  20
    Risk Aversion, Prudence, and Asset Allocation: A Review and Some New Developments.Michel M. Denuit & Louis Eeckhoudt - 2016 - Theory and Decision 80 (2):227-243.
    In this paper, we consider the composition of an optimal portfolio made of two dependent risky assets. The investor is first assumed to be a risk-averse expected utility maximizer, and we recover the existing conditions under which all these investors hold at least some percentage of their portfolio in one of the assets. Then, we assume that the decision maker is not only risk-averse, but also prudent and we obtain new minimum demand conditions as well as intuitively appealing (...)
    Direct download (2 more)  
     
    Export citation  
     
    Bookmark  
  33.  8
    Higher Behavioral Profile of Mindfulness and Psychological Flexibility is Related to Reduced Impulsivity in Smokers, and Reduced Risk Aversion Regardless of Smoking Status.Paweł Ostaszewski, Joanna Dudek, Wojciech Białaszek & Przemysław Marcowski - 2017 - Polish Psychological Bulletin 48 (4):445-455.
    Empirical evidence suggests that mindfulness, psychological flexibility, and addiction are interrelated in decision making. In our study, we investigated the relationship of the behavioral profile, composed of mindfulness and psychological flexibility, and smoking status on delay and probability discounting. We demonstrated the interaction of the behavioral profile of mindfulness and psychological flexibility and smoking status on delay discounting. We found that individuals who smoked and displayed higher mindfulness and psychological flexibility devalued rewards at a slower rate, compared to smokers with (...)
    No categories
    Direct download  
     
    Export citation  
     
    Bookmark  
  34. Rational Choice, Risk Aversion, And Evolution.Samir Okasha - 2007 - Journal of Philosophy 104 (5):217-235.
  35.  7
    Neurocognitive Development of Risk Aversion From Early Childhood to Adulthood.David J. Paulsen, R. McKell Carter, Michael L. Platt, Scott A. Huettel & Elizabeth M. Brannon - 2011 - Frontiers in Human Neuroscience 5.
  36.  56
    On S-Convexity and Risk Aversion.Michel Denuit, Claude Lefèvre & Marco Scarsini - 2001 - Theory and Decision 50 (3):239-248.
    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.
    Direct download (5 more)  
     
    Export citation  
     
    Bookmark   2 citations  
  37.  37
    Biung-Ghi Ju/Unanimity and Resource Monotonicity 1–17 Young-Ran Roh/Is the Disposition of Constrained Maximization Chosen Rationally? 19–41 Eric Langlais/Willingness to Pay for Risk Reduction and Risk Aversion Without the Expected Utility As. [REVIEW]Carlo Alberto Magni, Anna Maffioletti, Michele Santoni & Do Trade - 2005 - Theory and Decision 59 (1):345-346.
    A decomposition model of Net Final Values, named Systemic Value Added, is proposed for decision-making purposes, based on a systemic approach introduced in Magni [Magni, C. A., Bulletin of Economic Research 55, 149–176; Magni, C. A. Economic Modelling 21, 595–617]. The model translates the notion of excess profit giving formal expression to a counterfactual alternative available to the decision maker. Relations with other decomposition models are studied, among which Stewart’s [Stewart, G.B., The Quest for Value: The EVA™ Management Guide, Harper (...)
    Direct download  
     
    Export citation  
     
    Bookmark  
  38.  26
    On the Risk-Aversion Comparability of State-Dependent Utility Functions.Gerald L. Nordquist - 1985 - Theory and Decision 18 (3):287-300.
  39.  24
    The Ordinal Utility Under Uncertainty and the Measure of Risk Aversion in Terms of Preferences.Aldo Montesano - 1985 - Theory and Decision 18 (1):73-85.
  40.  25
    Risk Aversion in N-Person Bargaining.Hans Peters & Stef Tijs - 1985 - Theory and Decision 18 (1):47-72.
  41.  2
    Assessing Risk Aversion From the Investor’s Point of View.Antonio Díaz & Carlos Esparcia - 2019 - Frontiers in Psychology 10.
    Direct download (2 more)  
     
    Export citation  
     
    Bookmark  
  42.  29
    Catastrophe Avoidance and Risk Aversion: Implications of Formal Utility Maximization. [REVIEW]Robert U. Ayres & Manalur S. Sandilya - 1986 - Theory and Decision 20 (1):63-78.
  43.  3
    Context-Dependent Risk Aversion: A Model-Based Approach.Darío Cuevas Rivera, Florian Ott, Dimitrije Markovic, Alexander Strobel & Stefan J. Kiebel - 2018 - Frontiers in Psychology 9.
    Direct download (2 more)  
     
    Export citation  
     
    Bookmark  
  44.  11
    Pregnancy and the Culture of Extreme Risk Aversion.Angela Ballantyne, Colin Gavaghan, John McMillan & Sue Pullon - 2016 - American Journal of Bioethics 16 (2):21-23.
    Direct download (3 more)  
     
    Export citation  
     
    Bookmark  
  45.  4
    An Association Between Inequity-Averse Moral Preference and Risk Aversion in Decision-Making.C. J. Palmer, B. Paton, T. T. Ngo, R. H. Thomson, J. Hohwy & S. M. Miller - unknown
  46. On s-Convexity and Risk Aversion.Denuit Michel, Lefevre Claude & Scarsini Marco - 2001 - Theory and Decision 50 (3).
     
    Export citation  
     
    Bookmark  
  47.  29
    The Role of Intuition and Reasoning in Driving Aversion to Risk and Ambiguity.Jeffrey V. Butler, Luigi Guiso & Tullio Jappelli - 2014 - Theory and Decision 77 (4):455-484.
    Using a large sample of retail investors as well as experimental data we find that risk and ambiguity aversion are positively correlated. We provide evidence that a common link is decision mode: intuitive thinkers tolerate more risk and ambiguity than effortful reasoners. One interpretation is that intuitive thinking confers an advantage in risky or ambiguous situations. We present supporting lab and field evidence that intuitive thinkers outperform others in uncertain environments. Finally, we find that risk and (...)
    Direct download (2 more)  
     
    Export citation  
     
    Bookmark   1 citation  
  48.  10
    A Second-Generation Disappointment Aversion Theory of Decision Making Under Risk.Pavlo Blavatskyy - 2018 - Theory and Decision 84 (1):29-60.
    This paper presents a new decision theory for modelling choice under risk. The new theory is a two-parameter generalization of expected utility theory. The proposed theory assumes that a decision maker: behaves as if maximizing expected utility; but may experience disappointment when the utility of a lottery’s outcome falls short of the expected utility of the lottery; and may have a preference for gambling. The proposed theory can rationalize the fourfold pattern of risk attitudes; the common ratio effect (...)
    No categories
    Direct download (2 more)  
     
    Export citation  
     
    Bookmark  
  49.  71
    Risk Vulnerability: A Graphical Interpretation.Louis Eeckhoudt & Béatrice Rey - 2011 - Theory and Decision 71 (2):227-234.
    The article gives a graphical interpretation of the concept of risk vulnerability. It shows that in a specific context of binary lotteries the assumption of risk vulnerability adds to prudence what the assumption of decreasing absolute risk aversion adds to risk aversion. We end the presentation showing that results can be extended to the concept of multiplicative risk vulnerability.
    Direct download (4 more)  
     
    Export citation  
     
    Bookmark   1 citation  
  50.  60
    Changes in Multiplicative Background Risk and Risk-Taking Behavior.Octave Jokung - 2013 - Theory and Decision 74 (1):127-149.
    This article analyzes the conditions under which any change in a multiplicative background risk induces a more cautious behavior. We give necessary and sufficient conditions under which any change in the multiplicative background risk with respect to the Nth-degree stochastic dominance raises local risk aversion. Surprisingly, decreasing relative risk aversion of any order up to N in the sense of Pratt coupled with decreasing relative risk aversion in the sense of Ross are (...)
    Direct download (3 more)  
     
    Export citation  
     
    Bookmark  
1 — 50 / 1000