Expected Utility, mu-sigma Preferences, and Linear Distribution Classes: A Further Result.

B-Tier
Journal: Journal of Risk and Uncertainty
Year: 1990
Volume: 3
Issue: 3
Pages: 277-81

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

This article is an extension of Meyer and Sinn's results on the representation of arbitrary von Neumann-Morgenstern functions in "mu-delta" space when the probability distributions to be compared belong to linear distribution class. It shows that, when absolute risk aversion decreases, stays constant, or increases not too fast, an increase in "delta," given "mu," increases the indifference curve slope: increased riskiness increases the required marginal compensation for risk when risk is measured by the standard deviation of wealth or income. Copyright 1990 by Kluwer Academic Publishers

Technical Details

RePEc Handle
repec:kap:jrisku:v:3:y:1990:i:3:p:277-81
Journal Field
Theory
Author Count
1
Added to Database
2026-01-29