Fear of loss, inframodularity, and transfers

A-Tier
Journal: Journal of Economic Theory
Year: 2012
Volume: 147
Issue: 4
Pages: 1490-1500

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

There exist several characterizations of concavity for univariate functions. One of them states that a function is concave if and only if it has nonincreasing differences. This definition provides a natural generalization of concavity for multivariate functions called inframodularity. Inframodular transfers are defined and it is shown that a finite lottery is preferred to another by all expected utility maximizers with an inframodular utility if and only if the first lottery can be obtained from the second via a sequence of inframodular transfers. This result is a natural multivariate generalization of Rothschild and Stiglitzʼs construction based on mean preserving spreads.

Technical Details

RePEc Handle
repec:eee:jetheo:v:147:y:2012:i:4:p:1490-1500
Journal Field
Theory
Author Count
2
Added to Database
2026-01-26