On the utility premium of Friedman and Savage

Louis Eeckhoudt and Harris Schlesinger

Economics Letters, 2009, vol. 105, issue 1, 46-48

Abstract: We re-examine the utility premium of Friedman-Savage [Friedman, Milton and Savage, Leonard J., "The Utility Analysis of Choices Involving Risk." Journal of Political Economy 56, 1948, pp. 279-304.]. This measure is useful in understanding risky choices. For instance its reaction to an increased wealth equates to a precautionary demand for saving. We also analyze its two components.

Keywords: Precautionary; saving; Prudence; Risk; aversion; Risk; premium; Utility; premium (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165-1765(09)00179-7
Full text for ScienceDirect subscribers only

Related works:
Working Paper: On the utility premium of Friedman and Savage (2009)
Working Paper: On the utility premium of Friedman and Savage (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:105:y:2009:i:1:p:46-48

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().