In this paper we apply to multiplicative lotteries the idea of preference for "harm disaggregation" that was used for additive lotteries in order to interpret the signs of successive derivatives of a utility function. In this way, we can explain in general terms why the values of the...

In this paper we propose benchmark values for the coefficients of relative risk aversionand relative prudence on the basis of a binary choice model where the decision makerchooses between aggregating or disaggregating multiplicative risks. We relate ourresults to the decision maker's willingness...

In this paper we apply to multiplicative lotteries the idea of preference for "harm disaggregation" that was used for additive lotteries in order to interpret the signs of successive derivatives of a utility function. In this way, we can explain in general terms why the values of the...