In this paper I analyze operational measure of riskiness defi ned by Foster and Hart (2007). I give simple intuition behind their main result. Then I extend the concept of riskiness measure in two respects - I de fine a generalized riskiness measure based on decreasing absolute risk aversion...

In this paper I show that within expected utility large buying and selling price gap is possible and Rabin (2000) paradox may be resolved if only initial wealth is allowed to be small. It implies giving up the doctrine of consequentialism which may be reduced to requiring initial wealth to be...