To make high-quality research more accessible and easier to explore.

Fields:

Delayed risks and risk premiums

Journal of Financial Economics 1975 2(3), 309-320
In this paper, two possible premiums for delayed risks are presented and compared. It is shown that one of them possesses some properties usually considered desirable for ‘roulette gambles’ while the other definition does not meet the same requirements. Finally, the response of both premiums to increased wealth is discussed. The analysis of this problem sheds some light on the basic difference between delayed risks and roulette gambles.