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Author: | Kadane, J.B. Bellone, G. |
Title: | De Finetti on risk aversion |
Journal: | Economics and philosophy
2009 : JUL, VOL. 25:2, p. 153-159 |
Index terms: | risk aversion |
Language: | eng |
Abstract: | According to Mark Rubinstein (2006) 'In 1952, anticipating Kenneth Arrow and John Pratt by over a decade, de Finetti formulated the notion of absolute risk aversion, used it in connection with risk premia for small bets, and discussed the special case of constant absolute risk aversion.' This note aims at ascertaining the extent to which this is true, and at correcting certain minor errors appearing in de Finetti's work. |
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