Define the riskiness of a gamble as the reciprocal of the absolute risk aversion (ARA) of an individual with constant … “duality” axiom which, roughly speaking, asserts that less risk-averse individuals accept riskier gambles. The index is …

In the expected-utility theory of the monetary value of a statistical life, the so-called "dead-anyway" effect … risk increases with the initial level of risk. Their reasoning is based on differences in the marginal utility of wealth …: first, for a risk-averse individual without a bequest motive, marginal WTP for survival does increase with the level of risk …

Experimental research on decision making under risk has until now always employed choice data in order to evaluate the …

estimate of risk aversion ? and the time preference discount rate ? perindividual. This can be done because the consumption of …

One possible conclusion from recent experimental research on decision making under risk is that observed behaviour can … of the subjects and most of the choice problems under risk. However, it turns out that for decision problems under … plus error term may be regarded as a reasonable representation for choice under risk this does not seem to be true for …

Experimental research on decision making under risk has until now always employed choice data in order to evaluate the …

Expected Utility theory is not only applied to individual choices but also to ethical decisions, e.g. in cost … EU theory is able to deal with 'catastrophic risks', i.e. risks of high, but very unlikely losses, in an ethically … appealing way. In this paper we show that this is not the case. Rather, if in the framework of EU theory a plausible level of …

In general, models in finance assume that investors are risk averse. An example of such a recent model is the … and holds (as might be understood from the adjective 'economic') for exclusively risk averse investors. In their paper … risk aversion. The question never asked by the authors (and in most of the finance literature) is: Who is offering these …