Dual approaches to the analysis of risk aversion

Robert G. Chambers and John Quiggin

No 151175, Risk and Sustainable Management Group Working Papers from University of Queensland, School of Economics

Abstract: Dual approaches have proved their value in many areas of economic analysis. Until recently, however, they have been virtually ignored in the analysis of choice under uncertainty. In this paper, we present a dual formulation of choice under uncertainty based on a few simple assumptions about preferences, namely, continuity, monotonicity and convexity of preference sets. Particular emphasis is given to showing that the additive separability restriction, key to expected-utility theory, on preferences can be dropped with little loss of analytic power for a broad class of choice problems.

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Pages: 32
Date: 2006-06-15
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https://ageconsearch.umn.edu/record/151175/files/WPR06_1.pdf (application/pdf)

Related works:
Journal Article: Dual Approaches to the Analysis of Risk Aversion (2007)
Working Paper: Dual Approaches to the Analysis of Risk Aversion (2006)
Working Paper: DUAL APPROACHES TO THE ANALYSIS OF RISK AVERSION (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uqsers:151175

DOI: 10.22004/ag.econ.151175

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