Abstract
In this work we demonstrate that incomplete expected utility preferences are susceptible to criticism similar to that addressed at their complete analogues: even a modest degree of risk aversion in the small is sufficient to imply extreme and unreasonable degree of risk aversion in the large. Our results thus shed doubt on the usefulness of incomplete expected utility preferences for practical and theoretical purposes.
| Translated title of the contribution | Calibration results for incomplete preferences |
|---|---|
| Original language | English |
| Pages (from-to) | 323-330 |
| Number of pages | 8 |
| Journal | Revue Economique |
| Volume | 71 |
| Issue number | 2 |
| DOIs | |
| State | Published - Mar 2020 |
| Externally published | Yes |
Keywords
- Calibration
- Incomplete preferences
- Risk aversion