Even (Mixed) Risk Lovers Are Prudent: Comment
- (pp. 1536-37)
Abstract
Crainich, Eeckhoudt, and Trannoy (2013) show that mixed risk lovers are prudent. I show that common risk loving utility functions may not exhibit mixed risk loving––as is typical for risk aversion and mixed risk aversion––and thus these traits should be carefully distinguished. In particular, risk lovers may be imprudent.Citation
Ebert, Sebastian. 2013. "Even (Mixed) Risk Lovers Are Prudent: Comment." American Economic Review, 103 (4): 1536-37. DOI: 10.1257/aer.103.4.1536Additional Materials
JEL Classification
- D81 Criteria for Decision-Making under Risk and Uncertainty