When does aggregation reduce risk aversion?

B-Tier
Journal: Games and Economic Behavior
Year: 2012
Volume: 76
Issue: 2
Pages: 582-595

Authors (2)

Chambers, Christopher P. (not in RePEc) Echenique, Federico (University of California-Berke...)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

We study the problem of risk sharing within a household or syndicate. A household shares risky prospects using a social welfare functional. We characterize the social welfare functionals such that the household is collectively less risk averse than each member, and satisfies the Pareto principle and an invariance axiom. We single out the sum of certainty equivalents as the unique member of this family which is quasiconcave over riskless allocations.

Technical Details

RePEc Handle
repec:eee:gamebe:v:76:y:2012:i:2:p:582-595
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25