How can we interpret a "prudent" agent in the static case (i.e., someone with $u'''(\cdot)>0$)?
I understand that in a dynamic setting, someone exhibiting prudence would do precautionary savings to face future risky situations (see a post on this specific question here). Is it the only case where we have an interpretation of the third-order derivative of the utility function?
I ask this question because a necessary and sufficient condition for a utility function to exhibit decreasing absolute risk aversion is to have prudence uniformly larger than absolute risk aversion:
Absolute risk aversion is quite intuitive to understand in a static case (the larger it is, the higher the payoff I ask for taking a small risk), what about prudence?