Document Type
Article
Publication Date
1-1-2011
Abstract
Theories of decision under risk that challenge expected utility theory model risk attitudes at least partly with transformation of probabilities. We explain how attributing risk aversion (partly or wholly) to attitude towards probabilities, can produce extreme probability distortions that imply paradoxical risk aversion.
Recommended Citation
Cox, James and Sadiraj, Vjollca, "Risk Aversion as Attitude towards Probabilities: A Paradox" (2011). ExCEN Working Papers. 75.
https://scholarworks.gsu.edu/excen_workingpapers/75
COinS
Comments
To learn more about the Andrew Young School of Policy Studies and ExCEN Working Papers Series, visit https://aysps.gsu.edu/ and http://excen.gsu.edu/center/.