Gollier, Christian (contributor) - 2005
smaller than P
1
if and only the following
inequality holds:
n
X
θ=1
q
θ
φ
0
2
(Eu(ec
θ
))E[(ec
θ
−P
1
)u
0
(ec
θ
)] ≤ 0, (24 …
when the investment α
∗
is endogenous, as in section 5. Lemma 2 implies
that bq
2
is dominated by bq
1
when Eu(ec
1
) ≤ Eu …?, Economic Policy, 16, 301-328.
Gollier, C., (2001b), The economics of risk and time, MIT Press,
Cambridge.
Gollier, C., B …