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Generalised Means of Simple Utility Functions with Risk Aversion

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  • Conniffe, Denis

    (Dept. of Economics, National University of Ireland, Maynooth, Co. Kildare)

Abstract

The paper examines the properties of a generalised mean of simple utilities each displaying risk aversion, that is, with first derivative positive and second derivative negative. It shows the mean is itself a valid utility function and argues that simple component utilities, each of which may have quite restricted risk aversion properties, can be parsimoniously combined through the generalised mean formula to give a much more versatile utility function.

Suggested Citation

  • Conniffe, Denis, 2008. "Generalised Means of Simple Utility Functions with Risk Aversion," The Economic and Social Review, Economic and Social Studies, vol. 39(1), pages 1-12.
    • Handle: RePEc:eso:journl:v:39:y:2008:i:1:p:1-12
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    References listed on IDEAS

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