Risk aversion

Known as: Increasing absolute risk aversion, Decreasing absolute risk aversion, Risk averse 
In economics and finance, risk aversion is the behavior of humans (especially consumers and investors), when exposed to uncertainty, to attempt to… (More)
Wikipedia

Papers overview

Semantic Scholar uses AI to extract papers important to this topic.
Highly Cited
2008
Highly Cited
2008
.................................................................................................................................................. 1 Preface ..................................................................................................................................................... 2 1.0 Introduction ....................................................................................................................................... 6 2.0 The theoretical part ............................................................................................................................ 8 2.1 An introduction to decision theory ................................................................................................ 8 2.2 Expected utility theory .................................................................................................................. 9 2.2.1 The four axioms of rationality ................................................................................................ 9 2.2.2 Risk attitude and risk aversion ............................................................................................. 10 2.2.3 Critics and violations of expected utility theory ................................................................... 12 2.3 Prospect theory ............................................................................................................................ 14 2.3.1 The value function ................................................................................................................ 15 2.3.2 The weighting function........................................................................................................ 17 2.4 The capital asset pricing model (CAPM) .................................................................................... 18 2.5 The consumer capital asset pricing model (CCAPM) ................................................................. 19 2.6 Equity premium puzzle (EPP) ..................................................................................................... 20 2.7 Myopic loss aversion (MLA) ...................................................................................................... 21 3.0 Relevant prior research and experiments ........................................................................................ 24 3.1 Experimental economics ............................................................................................................. 24 3.2 Comments on strengths and weaknesses ..................................................................................... 24 3.3 Earlier practice and conducting of experiments .......................................................................... 26 3.3.1 Students ................................................................................................................................ 26 3.3.2 Professional traders and financial advisors .......................................................................... 27 3.3.3 Other people’s money........................................................................................................... 27 3.3.4 Gender differences................................................................................................................ 28 3.3.5 Teams and adolescents ......................................................................................................... 29 4.0 Experiment design and procedure ................................................................................................... 30 4.1 The Gneezy and Potters experimental design ............................................................................. 30 4.2 The changes to the original design .............................................................................................. 30 4.3 Hypotheses .................................................................................................................................. 33 4.4 The reasons behind choosing this design and procedure ............................................................. 33 4.5 Participants and the day of the experiment .................................................................................. 34 
  • figure 1
  • figure 2
  • figure 3
  • table 1
  • table 2
Is this relevant?
Highly Cited
2007
Highly Cited
2007
This paper investigates whether risk aversion and impatience are correlated with cognitive ability. We conduct incentive… (More)
  • table 4
  • table 5
  • figure 1
  • figure 2
  • figure 3
Is this relevant?
Highly Cited
2007
Highly Cited
2007
Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org… (More)
Is this relevant?
Highly Cited
2002
Highly Cited
2002
Cross-sections of option prices embed the risk-neutral probability density functions (PDFs) for the future values of the… (More)
  • table 1
  • table 2
  • table 3
  • table 4
  • table 5
Is this relevant?
Highly Cited
2002
Highly Cited
2002
A menu of paired lottery choices is structured so that the crossover point to the high-risk lottery can be used to infer the… (More)
  • table 1
  • table 2
  • table 3
  • table 4
  • figure 1
Is this relevant?
Highly Cited
2002
Highly Cited
2002
  • Abaxbank, Corso Monforte
  • 2002
We study a space of coherent risk measuresMφ obtained as certain expansions of coherent elementary basis measures. In this space… (More)
Is this relevant?
Highly Cited
2001
Highly Cited
2001
E conomics can be distinguished from other social sciences by the belief that most (all?) behavior can be explained by assuming… (More)
Is this relevant?
Highly Cited
2000
Highly Cited
2000
A menu of paired lottery choices is structured so that the crossover point to the high-risk lottery can be used to infer the… (More)
  • table 1
  • table 2
  • figure 1
  • table 3
Is this relevant?
Highly Cited
1998
Highly Cited
1998
Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org… (More)
  • table 1
Is this relevant?
Highly Cited
1998
Highly Cited
1998
A relationship exists between aggregate risk-neutral and subjective probability distributions and risk aversion functions. We… (More)
  • figure 1
  • figure 2
  • figure 3
  • figure 4
Is this relevant?