Question
Consider two vNM utility functions U1() and U2 () where 0 . Suppose U1() and U2() are both differentiable over all, U1() > 0, and
Consider two vNM utility functions U1() and U2 () where 0 . Suppose U1() and U2() are both differentiable over all, U1() > 0, and U2() > 0. For all cases where U2() is an affine transformation ofU1(), show thatU1()andU2()have equal Arrow-Pratt absolute risk aversion measures
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University Calculus Early Transcendentals, Multivariable
Authors: Joel R Hass, Maurice D Weir, George B Thomas Jr
2nd Edition
0321830849, 9780321830845
