Surveys of individual's risk-dollar tradeoffs illuminate not only the local tradeoff rates but also can be used to address more fundamental questions about the structure of utility functions. This ...

In cases where the utility function is increasing with upper and lower bounds then the utility function can be characterized by a distribution function, and we can take advantage of the various ...

Hyperbolic Absolute Risk Aversion (HARA) describes a family of utility functions where individuals' tolerance for risk is proportional to their wealth level. HARA utility functions provide a ...

4. The utility function V (x 1, x 2) = 5 [U (x 1, x 2)]/2+7 represents the same preference ordering as the utility function U (x 1, x 2). 5. A diminishing marginal rate of substitution implies that an ...