Risk Aversion and Expected-Utility Theory

Rabin, M. (2000). Risk Aversion and Expected-Utility Theory: A Calibration Theorem. Econometrica, 68(5), 1281-1292.

Type

Journal article

Intellectual base

Primary research

Year

2000

DOI

10.1111/1468-0262.00158

Link

https://doi.org/10.1111/1468-0262.00158

Cited from

behavioral_economics, economics_finance

Cited by

2 citations across 2 artifacts.

Each citation links to the sentence it supports in the citing article.

Primes

• Loss Aversion
  • T5 — Loss aversion vs. expected-utility calibration: Rabin (2000)
• Risk Aversion
  • demonstrated violations; Rabin (2000)

    This sourceProves a calibration theorem: under expected utility, even modest risk aversion over small stakes implies absurdly extreme risk aversion over large stakes, exposing EU's descriptive inadequacy for explaining small-stakes risk aversion via concavity alone.

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Registry ID ref:3f0195de7ea3 · see in the full table