-trivial violations of non-satiation and prudence. …

the literature on this question focused on risk aversion, we show that the concept of prudence (i.e., a positive third … derivative of the utility function) is essential to answer this question. We explain in this paper that prudence and prevention …

generate prudence before being transformed into risk-aversion. …

measure of prudence. These bounds are found through second-degree spreads of a transformation of the background risk. The … of terms involving absolute prudence and absolute temperance. Once a general set of necessary and sufficient conditions …

Risk aversion—but also the higher-order risk preferences of prudence and temperance—are fundamental concepts in the … study of economic decision making. We propose a method to jointly measure the intensity of risk aversion, prudence, and … compensations with a price list technique. We find evidence for risk aversion, prudence, and temperance. These traits correlate …

occurs, which influences the expected marginal utility of wealth. Using concepts of prudence (equivalently, downside risk … depends on risk aversion and prudence with respect to wealth. For the bivariate case (e.g., risk of death or illness), the … adjustment factor depends on risk aversion and cross-prudence in wealth. …

We study higher-order risk preferences, i.e. prudence and temperance, next to risk aversion in social settings … decision maker. However, we do not observe an influence of social settings on prudence and temperance. Our results reveal that …