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A general analysis of risk aversion and the risk in irrigation class of problems with applications to the new Soviet incentive model and other models

, : A general analysis of risk aversion and the risk in irrigation class of problems with applications to the new Soviet incentive model and other models. Economic Theory Discussion Paper, Department of Applied Economics, University of Cambridge (30): 31

The object of this paper is to present a general analysis of decision making under uncertainty for a class of problems where the objective function "switches" at a particular value of the random variable. The focus of the analysis is on deriving conditions which determine the change in the optimal value of the control variable when risk aversion or risk increases.


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