Risk Aversion in the Small and in the Large When Outcomes Are Multidimensional ∗

Abstract

The paper discusses criteria for comparing risk aversion of decision makers when outcomes are multidimensional. A weak concept, ”commodity specific greater risk aversion”, is based on the comparison of risk premia paid in a specified commodity. A stronger concept, ”uniformly greater risk aversion” is based on the comparison of risk premia regardless of what… (More)

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