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    Electronic Resource
    Electronic Resource
    On the Effect of Risk Aversion in Two-Person, Two-State Finance Economies (2008)
    Berkeley, Calif. : Berkeley Electronic Press (now: De Gruyter)
    The @B.E. journal of theoretical economics 7.2008, 1, art47 
    Details
    ISSN: 1555-0478
    Source: Berkeley Electronic Press Academic Journals
    Topics: Economics
    Notes: The effect of replacing an agent in a two-person two-state finance economy by a more risk averse agent is studied. It is established under which conditions the other agent benefits or looses in equilibrium from dealing with a more risk averse agent. If one agent becomes more risk averse, then the equilibrium allocation moves towards that agent's certainty line. Whether or not that is beneficial for the other agent depends on the location of the endowment point.
    Type of Medium: Electronic Resource
    URL: http://www.bepress.com/bejte/vol7/iss1/art47
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