ISSN:
1573-0476
Schlagwort(e):
compound gambles
;
law of large numbers
;
utility theory
Quelle:
Springer Online Journal Archives 1860-2000
Thema:
Wirtschaftswissenschaften
Notizen:
Abstract A compound of many independent replicas of a gamble may be chosen by a risk averter even if the single gamble would be rejected given any initial wealth level. Samuelson has shown that such choices are impossible if the expected utility theory of preference is adopted. But they are consistent with more general theories of preference. Consequently, the intuition suggested by the law of large numbers can be supported.
Materialart:
Digitale Medien
URL:
http://dx.doi.org/10.1007/BF00055567
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