@booklet {aumann-acffttora2015,
	title = {A Conceptual Foundation for the Theory of Risk Aversion},
	howpublished = {Discussion Papers},
	year = {2015},
	month = {6},
	abstract = {Classically, risk aversion is equated with concavity of the utility function. In this work we explore the conceptual foundations of this definition. In accordance with neo-classical economics, we seek an ordinal definition, based on the decisions maker s preference order, independent of numerical values. We present two such definitions, based on simple, conceptually appealing interpretations of the notion of risk-aversion. We then show that when cast in quantitative form these ordinal definitions coincide with the classical Arrow-Pratt definition (once the latter is defined with respect to the appropriate units), thus providing a conceptual foundation for the classical definition. The implications of the theory are discussed, including, in particular, to the understanding of insurance. The entire study is within the expected utility framework.},
	url = {/files/dp686.pdf},
	author = {Yonatan Aumann}
}
