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Subjective expected utility with nonincreasing risk aversion

  • Part III Risk Attitudes And Preference Intensities
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Abstract

It is shown that assumptions about risk aversion, usually studied under the pre-supposition of expected utility maximization, have a surprising extra merit at an earlier stage of the measurement work: together with the sure-thing principle, these assumptions imply subjective expected utility maximization for monotonic continuous weak orders.

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Authors and Affiliations

  1. Department of Mathematical Psychology, University of Nijmegen (NICI), P.O. Box 9104, NL-6500 HE, Nijmegen, The Netherlands

    Peter P. Wakker

Authors
  1. Peter P. Wakker
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Additional information

This study was carried out while the author was at the Netherlands Central Bureau of Statistics, Department of Statistical Methods, Voorburg, The Netherlands.

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Wakker, P.P. Subjective expected utility with nonincreasing risk aversion. Ann Oper Res 19, 219–228 (1989). https://doi.org/10.1007/BF02283522

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  • DOI: https://doi.org/10.1007/BF02283522

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