Strong One-Switch Utility

David E. Bell () and Peter C. Fishburn ()
Additional contact information
David E. Bell: Harvard Business School, Boston, Massachusetts 02163
Peter C. Fishburn: AT...T Shannon Laboratory, Florham Park, New Jersey 07932

Management Science, 2001, vol. 47, issue 4, 601-604

Abstract: The linear plus exponential utility function has received increasing attention of late as a particularly attractive family for evaluating additive gambles for wealth. In addition to its ability to reflect increasing appreciation for money, risk aversion, and decreasing risk aversion, it is consistent with a risk-return representation in which return is measured by expected value. In this paper we present a new condition, strong one-switch, that characterizes the linear plus exponential family.

Keywords: Decision Under Risk; Expected Utility; Utility Functions; One-Switch Preferences; Utility of Wealth (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (25)

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