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日期:2025-04-26
Utility is often assumed to be a function of profit or final ... is concave for a risk averse agent, convex for a risk ......
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日期:2025-05-01
In finance, economics, and decision theory, hyperbolic absolute risk aversion ... A utility function is said to exhibit hyperbolic absolute risk aversion if and only if ......
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日期:2025-04-29
Exponential utility implies constant absolute risk aversion, with coefficient of absolute risk aversion equal to a constant: ... This feature explains why the exponential utility function is considered ......
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日期:2025-04-28
Suppose Johnny is a risk-averse expected utility maximizer, and that he will ... If a person has CARA utility function and is averse to 50/50 lose $l / gain $g bets ......
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日期:2025-04-24
3 Risk Aversion. 3.1 Utility. 1. Simple case. • Utility (happiness) depends on consumption ... dC2 < 0. • These properties imply that the utility is a concave function....
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日期:2025-05-01
An Introduction to Risk-Aversion. In the previous section, we introduced the concept of an expected utility function, and stated how people maximize their ......
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日期:2025-04-24
From the discussion on risk-aversion in the Basic Concepts section, we recall that a consumer with a von Neumann-Morgenstern utility function can be one of ......