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    Rights statement: This is the author’s version of a work that was accepted for publication in Economics Letters. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economics Letters, 134, 2015 DOI: 10.1016/j.econlet.2015.06.004

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The utility premium of Friedman and Savage, comparative risk aversion, and comparative prudence

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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The utility premium of Friedman and Savage, comparative risk aversion, and comparative prudence. / Huang, James; Stapleton, Richard.
In: Economics Letters, Vol. 134, 09.2015, p. 34-36.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Huang, J & Stapleton, R 2015, 'The utility premium of Friedman and Savage, comparative risk aversion, and comparative prudence', Economics Letters, vol. 134, pp. 34-36. https://doi.org/10.1016/j.econlet.2015.06.004

APA

Huang, J., & Stapleton, R. (2015). The utility premium of Friedman and Savage, comparative risk aversion, and comparative prudence. Economics Letters, 134, 34-36. https://doi.org/10.1016/j.econlet.2015.06.004

Vancouver

Huang J, Stapleton R. The utility premium of Friedman and Savage, comparative risk aversion, and comparative prudence. Economics Letters. 2015 Sept;134:34-36. Epub 2015 Jun 12. doi: 10.1016/j.econlet.2015.06.004

Author

Huang, James ; Stapleton, Richard. / The utility premium of Friedman and Savage, comparative risk aversion, and comparative prudence. In: Economics Letters. 2015 ; Vol. 134. pp. 34-36.

Bibtex

@article{e9632cc931294dfe8b89083ea3fc3ca1,
title = "The utility premium of Friedman and Savage, comparative risk aversion, and comparative prudence",
abstract = "We show that the utility premium of Friedman and Savage can be used to explain comparative risk aversion and comparative prudence. More precisely, we show that the greater the risk aversion measure, the greater a risk's utility premium normalized by the marginal utility and that the greater the prudence measure, the greater the utility premium for disaggregating a certain loss of wealth and a zero-mean risk normalized by the utility function's second derivative.",
keywords = "utility premium, comparative risk aversion, comparative",
author = "James Huang and Richard Stapleton",
note = "18 month embargo This is the author{\textquoteright}s version of a work that was accepted for publication in Economics Letters. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economics Letters, 134, 2015 DOI: 10.1016/j.econlet.2015.06.004",
year = "2015",
month = sep,
doi = "10.1016/j.econlet.2015.06.004",
language = "English",
volume = "134",
pages = "34--36",
journal = "Economics Letters",
issn = "0165-1765",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - The utility premium of Friedman and Savage, comparative risk aversion, and comparative prudence

AU - Huang, James

AU - Stapleton, Richard

N1 - 18 month embargo This is the author’s version of a work that was accepted for publication in Economics Letters. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economics Letters, 134, 2015 DOI: 10.1016/j.econlet.2015.06.004

PY - 2015/9

Y1 - 2015/9

N2 - We show that the utility premium of Friedman and Savage can be used to explain comparative risk aversion and comparative prudence. More precisely, we show that the greater the risk aversion measure, the greater a risk's utility premium normalized by the marginal utility and that the greater the prudence measure, the greater the utility premium for disaggregating a certain loss of wealth and a zero-mean risk normalized by the utility function's second derivative.

AB - We show that the utility premium of Friedman and Savage can be used to explain comparative risk aversion and comparative prudence. More precisely, we show that the greater the risk aversion measure, the greater a risk's utility premium normalized by the marginal utility and that the greater the prudence measure, the greater the utility premium for disaggregating a certain loss of wealth and a zero-mean risk normalized by the utility function's second derivative.

KW - utility premium

KW - comparative risk aversion

KW - comparative

U2 - 10.1016/j.econlet.2015.06.004

DO - 10.1016/j.econlet.2015.06.004

M3 - Journal article

VL - 134

SP - 34

EP - 36

JO - Economics Letters

JF - Economics Letters

SN - 0165-1765

ER -