Time, Utility, Risk: Size-of-Risk Attitude and Distinct Decision Makers

11 Pages Posted: 2 Dec 2009

See all articles by Paola Ferretti

Paola Ferretti

Ca Foscari University of Venice - Dipartimento di Economia

Date Written: November 29, 2009

Abstract

In the context of time varying utility of wealth, this paper generalizes the proposed analysis of temporal risk aversion in the case of a Decision Maker who acts as a Buyer in order to study a different notion of risk aversion: the concept of size-of-risk aversion. Sufficient conditions ensuring existence and regularity of the definitions proposed in (Ferretti, 2008) are presented; temporal and instantaneous size-of-risk aversion definitions are given and a sufficient condition ensuring such a behavior is obtained.

Keywords: temporal utility, Buyer-Seller viewpoints, size-of-risk attitude

JEL Classification: D81

Suggested Citation

Ferretti, Paola, Time, Utility, Risk: Size-of-Risk Attitude and Distinct Decision Makers (November 29, 2009). Available at SSRN: https://ssrn.com/abstract=1515337 or http://dx.doi.org/10.2139/ssrn.1515337

Paola Ferretti (Contact Author)

Ca Foscari University of Venice - Dipartimento di Economia ( email )

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Venice, 30121
Italy
+39-041-2346923 (Phone)

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