Johansson-Stenman, Olof - Nationalekonomiska institutionen, Handelshögskolan - 2009
The calibration theorem by Rabin (2000) implies that seemingly plausible smallstake choices under risk imply implausible large-stake risk aversion. This theorem is derived based on the expected utility of wealth model. However, Cox and Sadiraj (2006) show that such implications do not follow...