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Some conditions for the equivalence between risk aversion, prudence and temperance
Theory and Decision ( IF 0.802 ) Pub Date : 2020-01-25 , DOI: 10.1007/s11238-020-09745-5
Marzia De Donno , Mario Menegatti

We study relationships between different aspects of risk preferences. We show that, under the assumptions of non-satiation and bounded marginal utility, some additional conditions on the asymptotic behaviour of the indices of relative prudence and relative temperance ensure that risk aversion, prudence and temperance are equivalent. Similar conclusions are derived for higher-degree risk aversion. Moreover, some links between indices of relative risk aversion of different degrees are derived. The implications of these results for several economic problems which involve risk changes are discussed.

中文翻译:

规避风险,谨慎和节制之间的等价条件

我们研究了风险偏好不同方面之间的关系。我们表明,在不满足条件和有限边际效用的假设下,相对谨慎和相对节制指数的渐近行为的一些附加条件可确保风险规避,谨慎和节制相等。对于更高程度的风险规避,也得出了类似的结论。此外,得出了不同程度的相对风险规避指标之间的一些联系。讨论了这些结果对涉及风险变化的若干经济问题的影响。
更新日期:2020-01-25
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