Add to ORKGRabin proved that a low level of risk aversion with respect to small gambles leads to a high, and absurd, level of risk aversion with respect to large gambles. Rabin's arguments strongly depend on expected utility theory, but we show that similar arguments apply to almost all non-expected utility theories and even to theories dealing with uncertainty. The set of restrictions needed in order to avoid such absurd behavior may suggest that the assumption of universality of preferences over final wealth is too strong.
Chapter 2 of this thesis studies the testable content of models of expectations-based reference-depe...
It is widely held that the influence of risk on rational decisions is not entirely explained by the ...
The calibration theorem by Rabin (2000) implies that seemingly plausible smallstake choices under ri...
Rabin [37] proved that a low level of risk aversion with respect to small gambles leads to a high, a...
Rabin [37] proved that a low level of risk aversion with respect to small gambles leads to a high, a...
Rabin (2000) proved that a low level of risk aversion with respect to small gambles leads to a high,...
Rabin (2000) proved that a low level of risk aversion with respect to small gambles leads to a high,...
A reasonable level of risk aversion with respect to small gambles leads to a high, and absurd, level...
A reasonable level of risk aversion with respect to small gambles leads to a high, and absurd, level...
Abstract A reasonable level of risk aversion with respect to small gambles leads to a high, and absu...
WP 2003-01 January 2003Recently, Rabin criticized the use of diminishing marginal utility in explain...
Within the expected-utility framework, the only explanation for risk aversion is that the utility fu...
This paper contributes to an important recent debate around expected utility and risk aversion. Reje...
Within the expected-utility framework, the only explanation for risk aversion is that the utility f...
This paper contributes to an important recent debate around expected utility and risk aversion. Reje...
Chapter 2 of this thesis studies the testable content of models of expectations-based reference-depe...
It is widely held that the influence of risk on rational decisions is not entirely explained by the ...
The calibration theorem by Rabin (2000) implies that seemingly plausible smallstake choices under ri...
Rabin [37] proved that a low level of risk aversion with respect to small gambles leads to a high, a...
Rabin [37] proved that a low level of risk aversion with respect to small gambles leads to a high, a...
Rabin (2000) proved that a low level of risk aversion with respect to small gambles leads to a high,...
Rabin (2000) proved that a low level of risk aversion with respect to small gambles leads to a high,...
A reasonable level of risk aversion with respect to small gambles leads to a high, and absurd, level...
A reasonable level of risk aversion with respect to small gambles leads to a high, and absurd, level...
Abstract A reasonable level of risk aversion with respect to small gambles leads to a high, and absu...
WP 2003-01 January 2003Recently, Rabin criticized the use of diminishing marginal utility in explain...
Within the expected-utility framework, the only explanation for risk aversion is that the utility fu...
This paper contributes to an important recent debate around expected utility and risk aversion. Reje...
Within the expected-utility framework, the only explanation for risk aversion is that the utility f...
This paper contributes to an important recent debate around expected utility and risk aversion. Reje...
Chapter 2 of this thesis studies the testable content of models of expectations-based reference-depe...
It is widely held that the influence of risk on rational decisions is not entirely explained by the ...
The calibration theorem by Rabin (2000) implies that seemingly plausible smallstake choices under ri...