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Should More Risk-Averse Agents Exert More Effort?
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Should More Risk-Averse Agents Exert More Effort?

Author

Listed:
  • Jullien, B.
  • Salanie, B.
  • Salanie, F.

Abstract

Consider an agent facing a risky distribution of losses who can change this distribution by exerting some effort. Should be exert more effort when he becomes more risk-averse? For instance, should we expect more risk-averse drivers to drive more cautiously? In this paper, we give sufficient conditions under which the answer is positive, using results presented in Jewitt (1989).

Suggested Citation

  • Jullien, B. & Salanie, B. & Salanie, F., 1998. "Should More Risk-Averse Agents Exert More Effort?," Papers 98.489, Toulouse - GREMAQ.
    • Handle: RePEc:fth:gremaq:98.489
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    Keywords

    RISK;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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