This paper argues that the traditional Arrow-Pratt measures of risk aversion are generally too weak for making comparisons between risky situations. A new stronger ordering is proposed, and it is applied to some canonical problems in insurance and finance, for which the Arrow-Pratt measures give ambiguous results.
MLA
Ross, Stephen A.. “Some Stronger Measures of Risk Aversion in the Small and the Large with Applications.” Econometrica, vol. 49, .no 3, Econometric Society, 1981, pp. 621-638, https://www.jstor.org/stable/1911515
Chicago
Ross, Stephen A.. “Some Stronger Measures of Risk Aversion in the Small and the Large with Applications.” Econometrica, 49, .no 3, (Econometric Society: 1981), 621-638. https://www.jstor.org/stable/1911515
APA
Ross, S. A. (1981). Some Stronger Measures of Risk Aversion in the Small and the Large with Applications. Econometrica, 49(3), 621-638. https://www.jstor.org/stable/1911515
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