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Decisions under unpredictable losses: An examination of the restated diversification principle
Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics. Nationalekonomi och Statistik. (CAFO)
2007 (English)In: Judgment and Decision Making, ISSN 1930-2975, Vol. 2, no 5, p. 312-316Article in journal (Refereed) Published
Abstract [en]

An experimental test of the descriptive adequacy of the restated diversification principle is presented. The principle

postulates that risk-averse utility maximizers will pool risks for their mutual benefit, even if information is missing about

the probabilities of losses. It is enough for people to assume that they face equal risks when they pool risks. The results

of the experiment support the principle.

Place, publisher, year, edition, pages
Society forJudgement and Decision Making , 2007. Vol. 2, no 5, p. 312-316
Research subject
Economy, Economics
Identifiers
URN: urn:nbn:se:vxu:diva-3252OAI: oai:DiVA.org:vxu-3252DiVA, id: diva2:203208
Available from: 2008-01-08 Created: 2008-01-08 Last updated: 2010-03-09Bibliographically approved

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Ahmed, Ali

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CiteExportLink to record
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Citation style
  • apa
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