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Putting Risk in its Proper Place
This paper examines preferences toward particular classes of lottery pairs. We show how such concepts as prudence and temperance can be fully characterized by a preference relation over theseExpand
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The Risk-Averse and Prudent Newsboy
The effects of risk and risk aversion in the single-period inventory "newsboy" problem are examined. Comparative-static effects of changes in the various price and cost parameters are determined andExpand
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A Good Sign for Multivariate Risk Taking
We provide an equivalence between the signs of these cross derivatives and individual preference within a particular class of simple lotteries. Expand
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Self-Insurance, Self-Protection and Increased Risk Aversion
Dans Ce Texte Nous Analysons L'effet D'un Accroissement du Degre de Riscophobie Sur les Activites D'auto-Assurance et D'auto-Protection. Nous Montrons Que Contrairement aux ActivitesExpand
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Changes in Risk and the Demand for Saving
How does risk affect saving? Empirical work typically examines the effects of detectible differences in risk within the data. How these differences affect saving in theoretical models depends on theExpand
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Apportioning of Risks via Stochastic Dominance
We show that a decision maker exhibiting (N + M)th-order stochastic dominance preference will allocate the state-contingent lotteries in such a way as not to group the two "bad" lotters in the same state. Expand
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The impact of prudence on optimal prevention
Summary.What are the determinants of the optimal level of effort to reduce the probability of a loss to occur? Whereas most of the literature on this question focused on risk aversion, we show thatExpand
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On the intensity of downside risk aversion
The degree of downside risk aversion (or equivalently prudence) is so far usually measured by $\frac{-U^{\prime \prime \prime }}{U^{\prime \prime }}$. We propose here another measure,Expand
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Changes in Background Risk and Risk Taking Behavior
We consider the effects of changes in the distribution of a background risk on the optimal risk taking behaviour of a risk- averse decision maker. In particular, we suppose that the background riskExpand
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Economic and Financial Decisions under Risk
University Press. All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage andExpand
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