Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/105136
Authors: 
Schlesinger, Harris
Year of Publication: 
2014
Series/Report no.: 
CESifo Working Paper 5067
Abstract: 
Although risk aversion has been used in economic models for over 275 years, the past few decades have shown how higher order risk attitudes are also quite important. A behavioral approach to defining such risk attitudes was developed by Eeckhoudt and Schlesinger (2006), based upon simple lottery preference. This article show how the mathematics of lattice theory can be used to model these lottery preferences. In addition to modeling a simple lattice structure, I show how such lattices can be extended in order to develop a better understanding of higher order risk attitudes.
Subjects: 
risk apportionment
mixed risk aversion
mixed risk loving
lattice theory
submodular function
JEL: 
D81
Document Type: 
Working Paper

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