This paper studies the relation between concavity, stochastic or state dependent utility functions, and risk aversion …. Using the common definition of risk aversion, but modified for state dependent preferences, we show that concavity does not … imply risk aversion. Instead, it implies a weaker version of risk aversion, defined herein, and called risk aversion for …

, is determined. These utility functions represent pair-wise risk aversion. The relations with univariate stochastic orders …

catastrophic risks. Economists typically model decision making under risk and uncertainty by expected utility with constant … relative risk aversion (power utility); statisticians typically model economic catastrophes by probability distributions with …

Although the link between risk aversion and diminishing marginal utility of wealth is academically well established …

We present a preference foundation for Chance Theory (CT), a model of decision making under uncertainty where the … the expected value of a lottery to the latter, so they are weakly risk averse. Besides explaining behavioral … irregularities like the expected utility paradoxes of Allais and Rabin, CT also separates risk attitude in the strong sense from …

risk aversion under the EUT. The standard time-separable form is recovered when the functions dictating the two attitudes … are identical. This approach differs from Kihlstrom and Mirman [1974, 1981] in two ways. First, risk aversion is defined … consumption. As a result, this approach allows characterization of risk attitudes (risk-averse/neutral/loving) and comparison of …

violated expected utility theory. Ross (1999) and others presented examples where expected utility maximizers would accept …

Building on the isomorphism between the theories of risk aversion and precautionary saving, an objective index of … framework for the monotone relation between risk aversion and prudence results, in which absence of level effects and stochastic … dominance of shocks are crucial, and generalized risk measures enable us to embed the fundamental result set forth by Menegatti …