On temperance and risk spreading

Courbage, Christophe (Haute école de gestion de Genève, HES-SO // Haute Ecole Spécialisée de Suisse Occidentale) ; Rey, Béatrice (Université Lumière, Lyon, France)

This paper shows that temperance is the highest order risk preference condition for which spreading N independent and unfair risks provides the highest level of welfare than any other possible allocations of risks. These results are also interpreted through the concept of N-superadditivity of the utility premium. This paper provides a novel application of temperance, not in terms of two risks as it is common, but in terms of N risks.


Keywords:
Article Type:
scientifique
Faculty:
Economie et Services
School:
HEG - Genève
Institute:
CRAG - Centre de Recherche Appliquée en Gestion
Subject(s):
Economie/gestion
Date:
2020-05
Pagination:
13 p.
Published in:
Theory and decision
Numeration (vol. no.):
2020, Vol. 88, pp. 527–539
DOI:
ISSN:
0040-5833
Appears in Collection:

Note: The file is under embargo until: 2021-05-02


 Record created 2020-05-13, last modified 2020-05-14

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