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American Economic Review Vol. 103 No. 4 2013

Even (Mixed) Risk Lovers are Prudent: Comment

Sebastian Ebert

Institute for Financial Economics and Statistics, University of Bonn, Adenauerallee 24-42, 53113 Bonn, Germany.

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.

DOI
10.1257/aer.103.4.1536
Volume
103
Issue
4
Pages
1536-1537
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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