Skip to Main Content
Handbook of the Economics of Risk and Uncertainty
book

Handbook of the Economics of Risk and Uncertainty

by Mark Machina, W. Kip Viscusi
November 2013
Beginner content levelBeginner
896 pages
35h 10m
English
North Holland
Content preview from Handbook of the Economics of Risk and Uncertainty
The Theory of Risk and Risk Aversion
111
degree of coinsurance than does the less risk averse consumer. These and other such
findings in a wide variety of decision settings lend considerable support for using A
u
(x),
the A-P measure of absolute risk aversion, both as a measure of the intensity or strength
of risk aversion, and as a way to compare risk aversion levels across decision makers.
There are some technical matters concerning A
u
(x) that are of interest. These stem
from analysis presented by Pratt (1964) showing how u(x) can be obtained from A
u
(x)
using a three step procedure. In the first step,
[−
A
u
(x)]=
u
′′
(x)
u
(x)
is integrated to obtain ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Handbook of the Economics of Finance

Handbook of the Economics of Finance

George M. Constantinides, Milton Harris, Rene M. Stulz
Quantitative Financial Risk Management: Theory and Practice

Quantitative Financial Risk Management: Theory and Practice

Constantin Zopounidis, Emilios Galariotis
Mathematical Methods for Finance: Tools for Asset and Risk Management

Mathematical Methods for Finance: Tools for Asset and Risk Management

Sergio M. Focardi, CFA Frank J. Fabozzi, Turan G. Bali

Publisher Resources

ISBN: 9780444536853