Measurement of Multi-attribute VSL considering Constant Relative Risk Aversion based on Happiness Survey in Japan

2019 ◽  
Vol 75 (5) ◽  
pp. I_201-I_209
Author(s):  
Ryuta MORI ◽  
Naoki SAKAMOTO ◽  
Kazunori NAKAJIMA ◽  
Eiji OHNO ◽  
Masafumi MORISUGI ◽  
...  
Keyword(s):  
Relative Risk ◽  
Risk Aversion ◽  
Relative Risk Aversion ◽  
Constant Relative Risk Aversion

A Simplified Measure of Investor Risk Aversion

2020 ◽  
pp. 026010792092451
Author(s):  
John Grable ◽  
Eun Jin Kwak ◽  
Martha Fulk ◽  
Aditi Routh
Keyword(s):  
United States ◽  
Relative Risk ◽  
Risk Aversion ◽  
Risk Taking ◽  
Measurement Techniques ◽  
Revealed Preference ◽  
The United States ◽  
Relative Risk Aversion ◽  
Measures Of Risk ◽  
Constant Relative Risk Aversion

This article introduces a simplified measure of investor risk aversion. The singleitem question combines elements from revealed preference and propensity measurement techniques in a way that matches traditional constant relative risk-aversion estimation procedures. Based on survey data from 500 investors living in the United States, scores from the proposed measure were found to correlate with other measures of risk aversion, as well as with indicators of risk-taking. A validity test showed that answers to the proposed measure were statistically associated with equity and cash ownership holdings in respondent portfolios. The simplicity and intuitive nature of the proposed measure and the alignment of question response categories to estimates of constant relative risk aversion make this a potentially valuable addition to the toolkit of researchers, financial educators, investors and those who provide advice to investors. JEL: C83, D10, D11, D14, D19, D81

scholarly journals Partnerships of Bidders with Constant Relative Risk Aversions

2020 ◽  
Vol 2020 ◽  
pp. 1-7
Author(s):  
Pingping Zhao ◽  
Kaili Xiang ◽  
Peimin Chen
Keyword(s):  
Relative Risk ◽  
Risk Aversion ◽  
Relative Risk Aversion ◽  
Unique Equilibrium ◽  
Risk Neutral ◽  
Bid Price ◽  
Risk Aversion Coefficient ◽  
Constant Relative Risk Aversion ◽  
The Difference

In this paper, we study a dynamic auction for allocating a single indivisible project while different participants have different bid values for the project. When the price rises continuously, the bidders can retreat the auction and obtain the compensation by the difference between the price at retreating time and the previous bid price. The final successful bidder achieves the project and pays compensations to others. We show that the auction of bidders with constant relative risk aversion (CRRA) has a unique equilibrium. While the relative risk aversion coefficient approaches to zero, the equilibrium with CRRA bidders would approach to the equilibrium with risk-neutral bidders.

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