A Note on the Generalised Measures of Risk Aversion

Authors

  • Tapan Biswas

DOI:

https://doi.org/10.15353/rea.v4i1.1542

Abstract

This paper is concerned with generalised scalar measures of risk aversion. A measure R which may meaningfully be applied to both unidimensional risks (risk in income or wealth) and multidimensional risks has been constructed. In case of identical preferences, we have also constructed an alternative measure of risk aversion R* which is shown to be related to the Khilstrom-Mirman measure. This relationship explains the nature of the Khilstrom-Mirman measure.

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Published

2012-05-22

Issue

Vol. 4 No. 1 (2012)

Section

Articles

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