Article ID Journal Published Year Pages File Type
5062797 Economics Letters 2006 6 Pages PDF
Abstract

I give necessary and sufficient conditions for expected utility to be transferable among agents with different state-independent risk preferences who share a risk they cannot influence. In an assignment game where participants choose partners based on risk aversion, the conditions permit a simple proof that matching is negative assortative.

Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Negative assortative matching of risk-averse agents with transferable expected utility
Authors
,