To give an example, say we start with 100 dollars and we enter a lottery. With probability $\pi$, this 100 dollars is reduced by 2 dollars. Otherwise our endowed 100 dollars does not change. Let's say our consumer's utility function is described by $u(c_h)=ln(c_h)$.
It's clear that the consumer is risk-averse, but how would I calculate the degree of risk aversion? How do you find the risk premium here?