Willingness to Pay for Risk Reduction and Risk Aversion without the Expected Utility Assumption

Introducing minimal assumptions on the individual preferences, I show that the Willingness To Pay for both a FSD and SSD reduction of risk may always be described as 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 smaller than the willingness to pay of a risk-neutral one, for a large class of individual preferences' representation and a large class of risks

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Year of publication:	2011
Authors:	Langlais, Eric
Publisher:	[S.l.] : SSRN
Subject:	Zahlungsbereitschaftsanalyse \| Willingness to pay \| Risikoaversion \| Risk aversion \| Theorie \| Theory \| Erwartungsnutzen \| Expected utility \| Risikoprämie \| Risk premium \| Risiko \| Risk
Description of contents:	Abstract [papers.ssrn.com]