Strategic risk aversion

• Autores: Sherrill Shaffer
• Localización: Applied financial economics, ISSN 0960-3107, Vol. 21, Nº. 13-15, 2011, págs. 949-956
• Idioma: inglés
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• Resumen

  • This article demonstrates that exaggerated risk aversion may comprise a rational form of strategic behaviour in the face of asymmetric information. Unlike some other forms of strategic behaviour analysed previously, this behaviour confers a benefit in the form of higher ex post consumption (not merely higher expected consumption or expected utility) and whether or not markets are perfectly competitive.