This paper analyzes the effect of increases in risk aversion on a general consumer choice model with multiple sources of risk. Sufficient--and, in the two commodity case, necessary--conditions for a given demand function to increase (or decrease) with increased risk aversion are derived. These...

The purpose of this paper is to investigate the direction of change in the optimal value of the choice variable following a deterministic transformation of the underlying random variable. Here, the author considers transformations representing either first or second degree stochastically...

When the return to a risky asset is altered, an investor's optimal portfolio is likely to change. In working out the details of these changes for expected utility maximizing investors, previous research has focused on portfolios composed of one risky and one riskless asset or two independent...