Huang, James - In: Economics Letters 125 (2014) 1, pp. 123-125
Proper risk aversion, a pivotal concept in the study of behavioral conditions on utility functions, states that an … undesirable risk can never be made desirable by the presence of an independent risk. It is well known that standard risk aversion … is sufficient for this concept. We show in this short article that convex and decreasing absolute risk aversion is an …