Presented by Paan Jindapon, University of Alabama
Abstract
The notion of risk apportionment, introduced by Eeckhoudt and Schlesinger (2006) and generalized by Eeckhoudt et al. (2009), has proven to be useful in understanding decision making in risky environments. A decision maker with a preference for risk apportionment prefers putting two independent risk increases in separate states to combining them in a single state. In this paper, we study comparative risk apportionment, the issue of comparing the strength of risk apportionment preference between two decision makers. Under expected utility theory, we find that the (n/m)th-degree Ross more risk aversion of Liu and Meyer (2013) is a sufficient condition for comparative nth-degree risk apportionment, whereas the corresponding (n/m)th-degree Arrow-Pratt more risk aversion is a necessary condition.
View full paper (PDF, 276.8 KB)
About the presenter’s visit
Paan Jindapon will be visiting the School of Economics on 20-26 June 2019. He will be sharing his host’s room on Thursday 20th June and Friday 21st June (Carlos Oyarzun room 521) He will then be using room 520A Colin Clark Building from Monday 24thJune till Wednesday 26th June.. If you would like to meet with Paan Jindapon or have lunch or dinner with him please contact Dr Carlos Oyarzun who will be his host while at The University of Queensland. Dr Oyarzun can be contact on c.oyarzun@uq.edu.au.
About Economic Theory Seminar Series
A seminar series designed specifically for economic theory researchers to network and collaborate.
Venue
UQ St Lucia campus
