In economics and finance, risk aversion is the tendency of people to prefer outcomes with low uncertainty to those outcomes with high uncertainty, even...

hyperbolic absolute risk aversion and at the same time is the only class of utility functions with constant relative risk aversion, which is why it is...

Risk aversion is a preference for a sure outcome over a gamble with higher or equal expected value. Conversely, rejection of a sure thing in favor of...

theory and economics, ambiguity aversion (also known as uncertainty aversion) is a preference for known risks over unknown risks. An ambiguity-averse individual...

instead of the expected value of an outcome, accounting for risk aversion, where the risk premium is higher for low-probability events than the difference...

The Hamilton-Jacobi-Bellman (HJB) equation is a nonlinear partial differential equation that provides necessary and sufficient conditions for optimality...

decision theory, hyperbolic absolute risk aversion (HARA): p.39,  : p.389,   refers to a type of risk aversion that is particularly convenient to model...

of relative risk aversion which are not required to be inversely related - a restriction imposed by the constant relative risk aversion utility function...

themselves for having caused the unsustainable economic conditions. Risk aversion is a kind of trading behavior exhibited by the foreign exchange market...

aversion Inequity aversion Loss aversion Risk aversion Taste aversion Work aversion Aversion may also refer to: Aversion therapy Aversion (film) Dvesha,...

The uncertainty effect, also known as direct risk aversion, is a phenomenon from economics and psychology which suggests that individuals may be prone...

framed as a loss, rather than a gain. It should not be confused with risk aversion, which describes the rational behavior of valuing an uncertain outcome...

relation between risk aversion and declining marginal utility for scalar outcomes can be stated formally with Jensen's inequality: risk aversion can be stated...

individuals are exposed to involuntary risk (a risk over which they have no control), they make risk aversion their primary goal. Under these circumstances...

consideration of utility. Some economists have studied the effects of risk aversion on the bargaining solution. Compare two similar bargaining problems...

Gijs van de Kuilen; Nathanael Vellekoop (2013). "Risk aversion and religion" (PDF). Journal of Risk and Uncertainty. 47 (2): 165–183. doi:10.1007/s11166-013-9174-8...

This would result in a risk premium of 5%. Individual investors set their own risk premium depending on their level of risk aversion. The formula can be...

VNM-rationality at all. This leads to a quantitative theory of monetary risk aversion. In 1738, Daniel Bernoulli published a treatise in which he posits that...

or an option involving risk and indicated the first day of their last menstruations, and found that the subjects risk aversion preferences varied over...

Legal risk Life-critical system Loss aversion Preventive maintenance Process risk Reputational risk Relative risk Reliability engineering Risk analysis...

paradox in his 1961 paper, "Risk, Ambiguity, and the Savage Axioms". It is generally taken to be evidence of ambiguity aversion, in which a person tends...

W., and E. Elisabet Rutström, “Risk Aversion in the Laboratory,” in J.C. Cox and G. W. Harrison (eds.), Risk Aversion in Experiments (Bingley, UK: Emerald...

risk preference ( a > 0 {\displaystyle a>0} for risk aversion, a = 0 {\displaystyle a=0} for risk-neutrality, or a < 0 {\displaystyle a<0} for risk-seeking)...

risk aversion substantially increased after the 2008 crisis. This encouraged individuals to divest more stock. From a macroeconomic perspective, risk...

Inequity aversion (IA) is the preference for fairness and resistance to incidental inequalities. The social sciences that study inequity aversion include...

of risk. The latter component, the cost of risk, is defined as the portfolio risk multiplied by a risk aversion parameter (or unit price of risk). For...

observed in economics, like the disposition effect or the reversing of risk aversion/risk seeking in case of gains or losses (termed the reflection effect)...

consumption path will be preferred to the more volatile one. This is due to risk aversion on part of individual agents. One way to calculate how costly this greater...

Counterfactual thinking is a concept in psychology that involves the human tendency to create possible alternatives to life events that have already occurred;...

built upon works by economists such as Robert Solow on the concept of risk aversion.[citation needed] Stiglitz and Rothschild showed three plausible definitions...