Risk Seeking and Lottery Design
In the previous two chapters, it has been shown that the majority of the EU analysis of choice under uncertainty may be carried over to the RDEU framework. It has also been shown that some results, notably those concerning second order risk aversion and those relying on the equivalence between risk aversion and second stochastic dominance, may not hold in the more general setting.
KeywordsRisk Aversion Gambling Behavior Stochastic Dominance Relative Risk Aversion Constant Relative Risk Aversion
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