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Valuing bets and hedges: Implications for the construct of risk preference.
- Source :
-
Judgment & Decision Making . Nov2018, Vol. 13 Issue 6, p501-508. 8p. - Publication Year :
- 2018
-
Abstract
- Risk attitudes implied by valuations of risk-increasing assets depart markedly from those implied by valuations of riskreducing assets. For instance, many are unwilling to pay the expected value for a risky asset or for its perfect hedge. Although nearly every theory of risk preference (and logic) demands a negative correlation between valuations of bets and hedges, we observe positive correlations. This inconsistency is difficult to expunge. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 19302975
- Volume :
- 13
- Issue :
- 6
- Database :
- Academic Search Index
- Journal :
- Judgment & Decision Making
- Publication Type :
- Academic Journal
- Accession number :
- 133470036
- Full Text :
- https://doi.org/10.1017/s1930297500006549