Ranganathan, Kavitha; Prakhya, Srinivas - In: Journal of Interdisciplinary Economics 24 (2012) 2, pp. 145-172
In the expected utility framework, concavity (or convexity) of the preference scaling function corresponds to risk-aversion (or risk-seeking) preferences. Friedman and Savage (1948) and Markowitz (1952) indicate that individuals may be risk-averse at some wealth levels but risk-seeking at...