Comparative risk aversion for state-dependent preferences

The idea that preferences may be state-dependent fits naturally with an analysis of uncertainty based on explicit representation of random variables as state-contingent consumption or production bundles. In this paper we show how these concepts of risk-aversion may be extended to the case of state-dependent preferences, whether or not these preferences are autocomparable in the sense of Karni. We characterize autocomparability as a special case. We show how standard comparative static results, originally derived for the state-independent expected utility model, may be extended to general state-dependent preferences, without the requirement for additive separability.


Issue Date:
May 04 2005
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/151172
Total Pages:
19
JEL Codes:
D8
Series Statement:
Risk and Uncertainty Program
R05/5




 Record created 2017-04-01, last modified 2017-08-27

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