• Title of article

    Preserving preference rankings under background risk

  • Author/Authors

    Christian Gollier، نويسنده , , Harris Schlesinger، نويسنده ,

  • Issue Information
    روزنامه با شماره پیاپی سال 2003
  • Pages
    5
  • From page
    337
  • To page
    341
  • Abstract
    For any random vector of wealth payoffs , let the random variable be mutually independent of and with . The basic question we address in this paper is the following: When can we say that is preferred by an expected-utility maximizer to whenever is preferred to ? In other words, when can we guarantee that the addition of an arbitrary independent background noise will not affect the preference ranking between other risks?
  • Keywords
    Risk tolerability , Background risk , Risk aversion , Zero-switch utility
  • Journal title
    Economics Letters
  • Serial Year
    2003
  • Journal title
    Economics Letters
  • Record number

    435246