degree of pessimism of the representative agent is the mean of the individual ones weighted by their index of absolute risk …

Risk', trans. by Louise Sommer, Econometrica, 22 (1), January, 23-36 -- 2. Milton Friedman and L.J. Savage (1948), 'The … Utility Analysis of Choices Involving Risk', Journal of Political Economy, 56 (4), August, 279-304 -- 3. John W. Pratt (1964 …), 'Risk Aversion in the Small and in the Large', Econometrica, 32 (1-2), January-April, 122-36 -- 4. Michael Rothschild and …

Expected utility provides simple, testable properties of the optimum behavior that should be displayed by risk …-Expected Utility and Risk Management examines whether the existing results in insurance economics are robust to more general models of … behavior under risk …

degree of pessimism of the representative agent is the mean of the individual ones weighted by their index of absolute risk …