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  1. Decreasing higher-order absolute risk aversion and higher-degree stochastic dominance.Michel Denuit & Liqun Liu - 2014 - Theory and Decision 76 (2):287-295.
    Fishburn and Vickson showed that, when applied to random alternatives with an equal mean, 3rd-degree and decreasing absolute risk aversion stochastic dominances represent equivalent rules. The present paper generalizes this result to higher degrees. Specifically, higher-degree stochastic dominance rules and common preference by all decision makers with decreasing higher-order absolute risk aversion are shown to coincide under appropriate constraints on the respective moments of the random variables to be compared.
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  • On temperance and risk spreading.Christophe Courbage & Béatrice Rey - 2020 - Theory and Decision 88 (4):527-539.
    This paper shows that temperance is the highest order risk preference condition for which spreading N independent and unfair risks provides the highest level of welfare than any other possible allocations of risks. These results are also interpreted through the concept of N-superadditivity of the utility premium. This paper provides a novel application of temperance, not in terms of two risks as it is common, but in terms of N risks.
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