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Time, risk and utility: a role-play analysis

Author

Listed:
  • Paola Ferretti

    (Department of Applied Mathematics - University Ca' Foscari Venice)

Abstract

This paper defines temporal risk aversion in the context of a simple choice framework: that of time varying utility of wealth. The attention is focused on a decision maker who acts as a buyer: temporal risk premium, instantaneous risk premium and time preference premium are defined.

Suggested Citation

  • Paola Ferretti, 2005. "Time, risk and utility: a role-play analysis," Game Theory and Information 0511010, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpga:0511010
    Note: Type of Document - pdf; pages: 8
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/game/papers/0511/0511010.pdf
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    References listed on IDEAS

    as
    1. Kimball, Miles S, 1990. "Precautionary Saving in the Small and in the Large," Econometrica, Econometric Society, vol. 58(1), pages 53-73, January.
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    More about this item

    Keywords

    temporal utility; buyer-seller viewpoints; temporal risk premium; instantaneous risk premium; time preference premium.;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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