The probability premium: A graphical representation

C-Tier
Journal: Economics Letters
Year: 2015
Volume: 136
Issue: C
Pages: 39-41

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

We illustrate that Pratt’s probability premium can be given a simple graphical representation allowing a direct comparison to the equivalent but more prevalent concept of risk premium under expected utility. We also show that the probability premium’s graphical representation under the dual theory mimics that of the risk premium under expected utility.

Technical Details

RePEc Handle
repec:eee:ecolet:v:136:y:2015:i:c:p:39-41
Journal Field
General
Author Count
2
Added to Database
2026-01-25