Even (Mixed) Risk Lovers Are Prudent: Comment
American Economic Review · 2013 · Volume 103 · Issue 4
Abstract
Crainich, Eeckhoudt, and Trannoy (2013) show that mixed risk lovers are prudent. I show that common risk loving utility functions may not exhibit mixed risk loving—as is typical for risk aversion and mixed risk aversion—and thus these traits should be carefully distinguished. In particular, risk lovers may be imprudent.
Keywords
Criteria for Decision-Making under Risk and Uncertainty
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