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http://hdl.handle.net/10419/32149
  

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dc.contributor.authorFranke, Günteren_US
dc.contributor.authorSchlesinger, Harrisen_US
dc.contributor.authorStapleton, Richard C.en_US
dc.date.accessioned2005-03-02en_US
dc.date.accessioned2010-05-14T12:00:27Z-
dc.date.available2010-05-14T12:00:27Z-
dc.date.issued2003en_US
dc.identifier.piurn:nbn:de:bsz:352-opus-10089-
dc.identifier.urihttp://hdl.handle.net/10419/32149-
dc.description.abstractAlthough there has been much attention in recent years on the effects of additive background risks, the same is not true for its multiplicative counterpart. We consider random wealth of the multiplicative form xy, where x and y are statistically independent random variables. We assume that y is endogenous to the economic agent, but that is an exogenous and nontradable background risk, which represents a type of market incompleteness. Our main focus is on how the presence of the multiplicative background risk y affects risk-taking behavior for decisions on the choice of x. We characterize conditions on preferences that lead to more cautious behavior.en_US
dc.language.isoengen_US
dc.publisherCoFE Konstanzen_US
dc.relation.ispartofseriesDiscussion paper series // Zentrum für Finanzen und Ökonometrie, Universität Konstanz 2003,05en_US
dc.subject.jelD81en_US
dc.subject.ddc330en_US
dc.subject.keywordmultiplicative risken_US
dc.subject.keywordbackground risken_US
dc.subject.keywordincomplete marketsen_US
dc.subject.keywordstandard risk aversionen_US
dc.subject.keywordaffiliated utility functionen_US
dc.subject.keywordmultiplicative risk vulnerabilityen_US
dc.subject.stwErwartungsnutzenen_US
dc.subject.stwNutzenfunktionen_US
dc.subject.stwRisikopräferenzen_US
dc.subject.stwTheorieen_US
dc.titleMultiplicative background risken_US
dc.typeWorking Paperen_US
dc.identifier.ppn480644632en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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