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

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...

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...

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...

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

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

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...

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

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