Riskiness in binary gambles: A geometric analysis

- Two orderings of binary gambles under riskiness are studied and compared.
- One ordering results from the index of riskiness analyzed by Aumann and Serrano.
- The other ordering arises from the measure of riskiness proposed by Foster and Hart.
- The iso-riskiness curves are defined and their properties analyzed.
- Such curves are represented geometrically for each measure of riskiness.

The orderings of binary gambles under the index of riskiness analyzed by Aumann and Serrano and under the measure of riskiness proposed by Foster and Hart are studied and compared. To proceed the properties of the curves that include gambles with the same level of riskiness are analyzed for each of those measures and such curves are represented geometrically.