EAP - Proceedings of the Estonian Academy of Sciences

PUBLISHED
SINCE 1952

proceedings
of the estonian academy of sciences

ISSN 1736-7530 (Electronic)
ISSN 1736-6046 (Print)

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Application of operator monotone functions in economics; pp. 42–47

PDF | doi: 10.3176/proc.2010.1.07

Author

Frank Hansen

Abstract

Operator monotone functions play an important role in economics. We show that 2-monotonicity is equivalent to decreasing relative risk premium, a notion recently introduced in microeconomics. We also show that an operator monotone function is risk vulnerable, a notion introduced by Gollier and Pratt.

References

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