Will a Risk‐Averse Decision Maker Ever Really Prefer an Unfair Gamble? Sometimes, He Will
回应了Horowitz对Prakash等人论文中Lemma 4的批评，指出其条件仅为必要而非充分，并推导出在特定财富水平下存在满足该引理限制的风险偏好函数。
ABSTRACT The comments of Horowitz (1998) on the Prakash, Chang, Hamid, and Smyser (1996) paper are specifically directed towards Lemma 4 of the original paper. This reply proposes that Horowitz fails to recognize that the conditions stated are only necessary but not sufficient, and solutions can be obtained for some specific utility function for a given level of wealth in the case of a neutral gamble and for a range of wealth for unfair gambles. We derive the conditions to show that a risk preference function that satisfies the restrictions of Lemma 4 can exist for a given level of wealth.