Fear of loss, inframodularity, and transfers

DOI10.1016/J.JET.2011.02.002MaRDI QIDQ435911zbMATH OpenOpenAlexFDO

Authors Alfred Müller, Marco Scarsini

Publication date 13 July 2012

Published in Journal of Economic Theory (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1016/j.jet.2011.02.002

zbMATH Keywords

inframodular transfersinframodularityintegral stochastic ordersmean preserving spreadrisk aversion

Mathematics Subject Classification ID

Utility theory (91B16)

Review text

The authors define the concept of an inframodular multivariate function, which is a natural generalization of concavity for multivariate functions. Further, the concept of inframodular transfers is defined and used for the characterization of decision maker's comparing finite lotteries. It is shown that a finite lottery is preferred to another by all expected utility maximizers with inframodular transfers.

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Cited in

(15)

• Copula-based measurement of interdependence for discrete distributions
• Multidimensional Pigou-Dalton transfers and social evaluation functions
• From unidimensional to multidimensional inequality: a review
• Ranking distributions of an ordinal variable
• Submodular financial markets with frictions
• Financial risk taking in the presence of correlated non-financial background risk
• Multidimensional inequality and inframodular order
• A model of social welfare improving transfers
• Nash equilibrium uniqueness in nice games with isotone best replies
• Multidimensional risk aversion: the cardinal sin
• Introduction to inequality and risk
• Ethically robust comparisons of bidimensional distributions with an ordinal attribute
• Duality theory and transfers for stochastic order relations
• Ordering distributions on a finitely generated cone
• Increasing directionally convex orderings of random vectors having the same copula, and their use in comparing ordered data

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