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
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
Journal title :
Economics Letters