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Incertidumbre: loterías y riesgo

Uncertainty: lotteries and risk

Eloy Ávalos ()

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper we develop the theory of uncertainty in a context where the risks assumed by the individual are measurable and manageable. We primarily use the definition of lottery to formulate the axioms of the individual's preferences, and its representation through the utility function von Neumann - Morgenstern. We study the expected utility theorem and its properties, the paradoxes of choice under uncertainty and finally the measures of risk aversion with monetary lotteries.

Keywords: Incertidumbr; riesgo; lotería simple; lotería compuesta; utilidad esperada; paradoja de San Petersburgo; paradoja de Allais; paradoja de Ellsberg; prima de riesgo; aversión al riesgo (search for similar items in EconPapers)
JEL-codes: D81 D80 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-upt
Date: 2011-05-29
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Persistent link: http://EconPapers.repec.org/RePEc:pra:mprapa:42339

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