Proper Risk Behavior

K. Dachraoui, L. Eeeckhoudt and Godfroid.P.

Ecole des Hautes Etudes Commerciales de Montreal- from Ecole des Hautes Etudes Commerciales de Montreal-Chaire de gestion des risques.

Abstract: How does risk aversion affect choices when expenses improve probabilities? Attempts tp answer this question in the literature found an endogenous switching probability. In this paper we introduce a new concept of comparative attitude to risk, namely proper risk behavior and determine 1/2 as the threshold propbability over wich a more proper risk behavior agent becomes gambler.

Keywords: RISK; AVERSION (search for similar items in EconPapers)
JEL-codes: D80 D81 (search for similar items in EconPapers)
Pages: 23 pages
Date: 1999
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:fth:etcori:99-01

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