Some remarks on measures of risk aversion and on their uses

Menahem E. Yaari

Research output: Contribution to journalComment/debate

Abstract

In this essay, measures of risk aversion are looked upon from the point of view of the "states of nature" approach to decision making under uncertainty. This point of view turns out to be quite useful in the formulation of axioms concerning the change in risk aversion as certain environmental parameters (e.g., wealth) vary. A simple portfolio selection problem (with one risky security) is used as a setting for the discussion.

Original languageEnglish
Pages (from-to)315-329
Number of pages15
JournalJournal of Economic Theory
Volume1
Issue number3
DOIs
StatePublished - Oct 1969
Externally publishedYes

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