This is a preview. Log in through your library . Abstract Rabin (Econometrica 68(5): 1281-1292, 2000) argues that, under expected-utility, observed risk aversion over modest stakes implies extremely ...

An act maps states of nature to outcomes; deterministic outcomes as well as random outcomes are included. Two acts f and g are comonotonic, by definition, if it never happens that f(s)>f(t) and g(t)>g ...

In economics, the utility function measures the welfare or satisfaction of a consumer as a function of the consumption of real goods, such as food or clothing. Utility function is widely used in ...