The nonlocal measures of risk-aversion in the economic process
Abstract
The article suggests risk-aversion measures to take into account the nonlocal effects in the description of consumer attitudes to risk. These measures depend on the utility changes on finite interval of values of income or of consumption, not only in the infinitely small neighbourhood of considered value. As a mathematical formalism, which allows us to describe nonlocal effects, authors used the theory of derivatives of arbitrary and non-integer orders. The standard risk-aversion measures are special cases of the proposed nonlocal measures.
Keywords
risk aversion measure, utility function, non-local characteristics, non-integer derivatives
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Section
Accounting System Analysis
Publication History
Published
2016-12-05
How to Cite
[1]
Tarasova V.V., Tarasov V.E. The nonlocal measures of risk-aversion in the economic process // Economics: Theory and Practice. 2016. No 4 (44). С. 54–58. URL: https://etip.kubsu.ru/article/view/317
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Copyright (c) 2016 V. V. Tarasova, V. E. Tarasov
This work is licensed under a Creative Commons Attribution 4.0 International License.