Elsevier

Games and Economic Behavior

Volume 116, July 2019, Pages 179-184
Games and Economic Behavior

Risk attitudes and risk dominance in the long run

https://doi.org/10.1016/j.geb.2019.05.001Get rights and content
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Abstract

This paper investigates the role that risk attitudes play in the evolution of conventions in the long run. Risk aversion is shown to be associated with the evolution of maximin conventions, and risk seeking with the evolution of payoff dominant conventions.

JEL classification

C73
D81
D90

Keywords

Evolution
Conventions
Risk attitudes
Loss aversion
Concave utility
State dependence

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