Linked from

The 18 pages that link to Risk aversion, each with the reason it gives.

• Moral hazardCompared with: Risk aversion explains choices under uncertainty, while moral hazard concerns how protection changes those choices.

• UtilityRelated: The curvature of utility over wealth can represent aversion to financial risk.

• Expected utilityRelated: Concave utility functions represent this attitude within expected-utility models.

• Expected utility hypothesisRelated: Utility curvature captures how expected-utility maximizers trade certainty against risk.

• Loss aversionCompared with: Risk aversion concerns preference for certainty; loss aversion concerns unequal responses to gains and losses.

• Intertemporal choiceRelated: It helps distinguish dislike of delay from dislike of uncertain future outcomes.

• Portfolio optimizationRelated: It determines how much expected return an investor gives up to reduce portfolio risk.

• Allais paradoxRelated: The paradox shows that risk attitudes can shift sharply near certainty.

• Modern portfolio theoryRelated: Risk aversion determines which efficient portfolio an investor prefers.

• St. Petersburg paradoxRelated: The lottery’s enormous rare payouts need not compensate for its small likely outcomes.

• Harry MarkowitzRelated: Risk aversion helps explain why investors choose different points on the efficient frontier.

• Mean–variance analysisRelated: It determines which point on the efficient frontier an investor prefers.

• Financial economicsRelated: It explains why investors demand compensation for bearing uncertainty.

• James TobinRelated: Risk aversion helps explain Tobin’s account of diversified portfolios and money holdings.

• Bengt HolmströmRelated: Contract design must balance incentives against the risk imposed on workers.

• Maurice AllaisRelated: Risk attitudes help explain why Allais’s choices depart from simple expected-value comparisons.

• Ambiguity effectCompared with: It concerns known probabilities, whereas the ambiguity effect concerns unknown ones.

• NeuroeconomicsRelated: Neural measures help distinguish valuation of expected returns from sensitivity to uncertainty.