Abstract
This paper concerns utility functions for money. A measure of risk aversion in the small, the risk premium or insurance premium for an arbitrary risk, and a natural concept of decreasing risk aversion are discussed and related to one another. Risks are also considered as a proportion of total assets.
Keywords
EconomicsRisk aversion (psychology)EconometricsMathematical economicsExpected utility hypothesis
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Publication Info
- Year
- 1976
- Type
- article
- Volume
- 44
- Issue
- 2
- Pages
- 420-420
- Citations
- 4741
- Access
- Closed
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Cite This
John W. Pratt
(1976).
Risk Aversion in the Small and in the Large.
Econometrica
, 44
(2)
, 420-420.
https://doi.org/10.2307/1912743
Identifiers
- DOI
- 10.2307/1912743