Deck, Cary; Schlesinger, Harris - In: Econometrica 82 (2014) 09, pp. 1913-1943
Risk aversion (a second‐order risk preference) is a time‐proven concept in economic models of choice under risk. More recently, the higher order risk preferences of prudence (third‐order) and temperance (fourth‐order) also have been shown to be quite important. While a majority of the...