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Increases in Risk Aversion

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  • Bultel, Dirk

Abstract

This note gives sufficient conditions for signing the effect of an increase in risk aversion on the optimal level of the choice variable selected by a decision maker under conditions of risk. The results are illustrated with a decision model taken from the theory of insurance demand. Copyright 1999 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • Bultel, Dirk, 1999. "Increases in Risk Aversion," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(1), pages 63-67, February.
    • Handle: RePEc:ier:iecrev:v:40:y:1999:i:1:p:63-67
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