The Microeconomics of Risk Aversion

Colin Read
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Colin Read: SUNY College

Chapter 9 in The Fear Factor, 2009, pp 76-82 from Palgrave Macmillan

Abstract: Abstract Before I describe the economic approach to decision making in risky circumstances, let me offer some truth in advertising. It would not be unfair to conclude by now that most individuals do not behave as homo economicus, that uber-rational decision making fiction employed by economists to permit us to use the tools of rationality to analyze markets and human behavior. A simple example will demonstrate this.

Keywords: Risk Aversion; Expected Return; Hedge Fund; Risk Tolerance; Capital Asset Price Model (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-25086-4_10

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DOI: 10.1057/9780230250864_10

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