Greater Mutual Aggravation
研究了在什么条件下，两个独立风险之间的相互恶化程度会随着风险本身变大而增强，解释了高阶风险偏好的实验发现，并指导风险加剧时的管理决策。
A large strand of research has identified when (i) a single risk is undesirable and (ii) two independent risks aggravate each other. We extend this line of inquiry by establishing when (iii) mutual aggravation is greater for greater risks. This natural property of greater mutual aggravation explains recent experimental findings on higher-order risk preferences, and can guide managerial behavior when risks in the decision environment become more severe. The online appendix is available at https://doi.org/10.1287/mnsc.2017.2746 . This paper was accepted by Han Bleichrodt, decision analysis.