The relationship between risk in the environment, risk aversion and inequality aversion is not well understood …. Theories of fairness have typically assumed that pie sizes are known ex-ante. Pie sizes are, however, rarely known ex ante … with varying degrees of risk (“endowment risk”) influence individual behavior. We derive theoretical predictions for these …

The relationship between risk in the environment, risk aversion and inequality aversion is not well understood …. Theories of fairness have typically assumed that pie sizes are known ex-ante. Pie sizes are, however, rarely known ex ante … with varying degrees of risk (“endowment risk”) influence individual behavior. We derive theoretical predictions for these …

located at the bottom of the income distribution, where risk aversion cannot play any role. …

Assuming a risk-neutral bank and assuming household utility to be exponential, we show how under information symmetry …

We develop a method to estimate domain-specific risk. We apply the method to sickness insurance by fitting a utility … risk aversion increases with income. Second, marginal utility is higher in the sick state conditional on income, due to an … observed fixed cost of sickness. Third, the domain-specificity of risk shifts the focus on the smoothing of utility, not …