Mixed models for risk aversion, optimal saving, and prudence
Irina Georgescu. Academy of Economic Studies.
Jani Kinnunen. Institute for Advanced Management Systems Research.
- Fuzzy Economic Review: Volume 21, Number 2, 2016
- DOI: 10.25102/fer.2016.02.03
Abstract
The models of this paper refer to mixed risk situations: one parameter is a fuzzy number and the other is a random variable. Three notions of mixed expected utility are proposed as a mathematical basis of these models. The results of the paper describe risk aversion and prudence of an agent in front of a risk situation with mixed parameters and the changes of optimal saving as an effect of mixed risk.