Wang, Jianli; Li, Jingyuan - In: Journal of Mathematical Economics 55 (2014) C, pp. 136-142
We define decreasing higher-degree Ross risk aversion and provide an intuitive interpretation for it. We show that all deteriorations of background risk in the sense of n-th risk increase raise risk aversion in the Arrow–Pratt sense if and only if decreasing (n+1)-th degree Ross risk aversion...