Proper Risk Behavior.

How does risk aversion affect choices when expenses improve probabilities? Attempts tp answer this question in the literature found an endogenous switching probability. In this paper we introduce a new concept of comparative attitude to risk, namely proper risk behavior and determine 1/2 as the threshold propbability over wich a more proper risk behavior agent becomes gambler.

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Year of publication:	1999
Authors:	Dachraoui, K. ; Eeeckhoudt, L. ; Godfroid.P.
Institutions:	HEC Montréal (École des Hautes Études Commerciales)
Subject:	RISK AVERSION

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Series:	Ecole des Hautes Etudes Commerciales de Montreal-.
Type of publication:	Book / Working Paper
Notes:	23 pages
Classification:	D80 - Information and Uncertainty. General ; D81 - Criteria for Decision-Making under Risk and Uncertainty
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005474674