Increasing risk with state-dependent preferences (Q759604)
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| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Increasing risk with state-dependent preferences |
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Increasing risk with state-dependent preferences (English)
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1985
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A definition of increasing risk for state-dependent preferences is introduced and its usefulness for the analysis of concrete economic problems is illustrated. For classes of individuals with the same reference set the notion of increasing risk has three equivalent characterizations analogous to those obtained in the case of state- independent preferences. The definition is used to conduct a comparative statics analysis of a portfolio problem with state-dependent preferences.
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uncertainty
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increasing risk for state-dependent preferences
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comparative statics analysis
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portfolio problem
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