Multiplicative Background Risk
研究乘法形式的背景风险如何影响经济主体的风险承担行为，扩展了Gollier和Pratt（1996）的结果，为理解市场不完全性下的决策提供理论依据。
Although there has been much attention in recent years on the effects of additive background risks, the same is not true for its multiplicative counterpart. We consider random wealth of the multiplicative form x̃ỹ, where x̃ and ỹ are statistically independent random variables. We assume that x̃ is endogenous to the economic agent but that ỹ is an exogenous and nontradable background risk that represents a type of market incompleteness. Our main focus is on how the presence of the multiplicative background risk ỹ affects risk-taking behavior for decisions on the choice of x̃. We extend the results of Gollier and Pratt (1996) to characterize conditions on preferences that lead to more cautious behavior.