GABILLON, Emmanuelle - Groupe de Recherche en Économie Théorique et … - 2011
Generally, in the standard presentation of the expected utility model, the risk premium represents how much a risk …-averse decision maker is ready to pay to have a risk eliminated. Here, however, we introduce a different risk premium: how much should … a risk (which could be the return on a financial asset) yield to be acceptable to a risk-averse decision maker. Although …