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Left-Side strong increases in risk and their comparative statics

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This paper introduces a new concept of left-side strong increases in risk (L-SIR) that extends the definition of strong increases in risk (SIR). We also provide somewhat stronger restrictive set of risk-averse decision-makers with a non-negative third derivative utility (prudence) to obtain an appealing comparative statics result for L-SIR.

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Correspondence to Suyeol Ryu.

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The authors gratefully acknowledge the helpful comments and suggestions of an anonymous referee

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Ryu, S., Kim, I. Left-Side strong increases in risk and their comparative statics. Theor Decis 57, 59–68 (2004). https://doi.org/10.1007/s11238-004-2859-3

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  • left-side strong increases in risk
  • prudence
  • Rothschild–Stiglitz increases in risk
  • strong increases in risk