Maggi, M. A.; Magnani, U.; Menegatti, M. - Facoltà di Economia, Università degli Studi di Parma - 2003
This paper shows how, under a few standard assumptions on the utility function, the monotonicity of absolute risk aversion (ARA) and of absolute prudence (AP) are connected. We get some general Propositions on the behaviour of the two functions regarding the positions and the number of their...