منابع مشابه
Risk Aversion, Liquidity, and Endogenous Short Horizons
We analyze a competitive model in which different information signals get reflected in value at different points in time. If investors are sufficiently risk averse, we obtain an equilibrium in which all investors focus exclusively on the short term. In addition, we show that increasing the variance of informationless trading increases market depth but causes a greater proportion of investors to...
متن کاملInequality aversion and risk aversion
This note shows that for two inequality averse social welfare functions, if one is more inequality averse than the other, the household preference induced by optimally allocating aggregate bundles according to this social welfare function is more risk averse than the other. We present examples showing that this comparative static can be reversed if inequality aversion is dropped. We show that t...
متن کاملFlexible Multi-Objective Transmission Expansion Planning with Adjustable Risk Aversion
This paper presents a multi-objective transmission expansion planning (TEP) framework. Rather than using the conventional deterministic reliability criterion, a risk component based on the probabilistic reliability criterion is incorporated into the TEP objectives. This risk component can capture the stochastic nature of power systems, such as load and wind power output variations, component av...
متن کاملSimilarities between Greater Risk Aversion and Greater Downside Risk Aversion
This paper characterizes downside risk aversion in a simple and intuitive manner. The characterization highlights certain features of downside risk aversion that are common with traditional risk aversion in regards the comparative statics of risk-free wealth. Also, using this characterization one can simplify considerably a theorem by Jindapon (2010) relating to greater downside risk aversion a...
متن کاملLoss aversion and perceptionally risk aversion
This paper analyzes, for S-shaped value functions, the relations between loss aversion and perceptionally risk aversion (i.e. computed with the perceived probability weights) in Cumulative Prospect Theory . We show that perceptionally risk aversion for mixed sign lotteries is equivalent to weak (or strong) loss aversion, so this is the right assumption to get a sensible behavior towards risk. T...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of the European Economic Association
سال: 2006
ISSN: 1542-4766,1542-4774
DOI: 10.1162/jeea.2006.4.4.708