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Increases in Risk Aversion
Author(s) -
Bültel Dirk
Publication year - 1999
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/1468-2354.00005
Subject(s) - risk aversion (psychology) , economics , decision maker , econometrics , variable (mathematics) , actuarial science , expected utility hypothesis , mathematical economics , mathematics , mathematical analysis , management science
This note gives sufficient conditions for signing the effect of an increase in risk aversion on the optimal level of the choice variable selected by a decision maker under conditions of risk. The results are illustrated with a decision model taken from the theory of insurance demand.