The Law of Demand and Risk Aversion.
This note proposes a necessary and sufficient condition on a utility function to guarantee that it generates a demand function satisfying the law of demand. This condition can be interpreted in terms of an agent's attitude towards lotteries in commodity space. As an application, we show that when an...
| Publicado en: | Econometrica Vol. 71; no. 2; pp. 713 - 722 |
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| Formato: | Artículo |
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Wiley-Blackwell
March 2003
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=513129229&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 513129229 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00129682 ECN jtl: Econometrica issn: 00129682 maglogo: N pubinfo: dt: March 2003 vid: 71 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 513129229 10.1111/1468-0262.00421 ppf: 713 ppct: 9 formats: tig: atl: The Law of Demand and Risk Aversion. aug: au: Quah, John K.-H. su: Risk -- Mathematical models Economic demand Mathematical models sug: subj: Risk -- Mathematical models Economic demand Mathematical models ab: This note proposes a necessary and sufficient condition on a utility function to guarantee that it generates a demand function satisfying the law of demand. This condition can be interpreted in terms of an agent's attitude towards lotteries in commodity space. As an application, we show that when an agent has an expected utility function, her demand for securities satisfies the law of demand if her coefficient of relative risk aversion does not vary by more than 4. Reprinted by permission of the publisher. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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