Risk Aversion in Risk Acceptance Criteria

摘要

The risk averse attitude that is included in some proposed risk acceptance criteria is examined. It is shown that it is a weaker attitude than risk aversion, as is commonly defined in decision theory. Consequently, the boundary curve separating acceptable and unacceptable regions does not have to be a straight line on the logarithmic frequency-consequence space. A curve of variable slope would express the same attitude as long as the slope is less than -1. (ERA citation 06:015688)