This paper examines preferences towards particular classes of lottery pairs. We show how concepts such as prudence and temperance can be fully characterized by a preference relation over these lotteries. If preferences are defined in an expected-utility framework with differentiable utility, the...

This paper examines preferences towards particular classes of lottery pairs. We show how concepts such as prudence and temperance can be fully characterized by a preference relation over these lotteries. If preferences are defined in an expected-utility framework with differentiable utility, the...

Many decisions under risk involve alternatives with multiple and possibly non-financial attributes. In this paper, we characterize risk apportionment preferences in a bivariate setting. We distinguish between desirable and undesirable attributes and show how to adapt the theory to obtain...