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Risk aversion, moral hazard, and the principal's loss

✍ Scribed by Hector Chade; Virginia N. Vera de Serio


Publisher
Springer
Year
2002
Tongue
English
Weight
59 KB
Volume
20
Category
Article
ISSN
0938-2259

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Economic decision making under uncertainty is universally characterized by aversion to risk. One of the most basic concepts in economic theory, risk aversion is usually explained by the concavity of the utility function, which, in turn, is based on a person's satiability for wealth. I use genetic al