Skip to main content

All Questions

Filter by
Sorted by
Tagged with
11 votes
3 answers
1k views

Does risk aversion cause diminishing marginal utility, or vice versa?

Let $A$ be the set of possible states of the world, or possible preferences a person could have. Let $G(A)$ be the set of "gambles" or "lotteries", i.e. the set of probability distributions over $A$. ...
Keshav Srinivasan's user avatar