2 papers
q-fin.RM2021
Probability Premium and Attitude Towards Probability
Louis R. Eeckhoudt, Roger J. A. Laeven
Employing a generalized definition of Pratt (1964) and Arrow's (1965, 1971) probability premium, we introduce a new concept of attitude towards probability. We illustrate in a prob…
q-fin.RM2017
Risk Apportionment: The Dual Story
Louis R. Eeckhoudt, Roger J. A. Laeven, Harris Schlesinger
By specifying model free preferences towards simple nested classes of lottery pairs, we develop the dual story to stand on equal footing with that of (primal) risk apportionment. T…