Anomalies: Risk Aversion

Abstract
Economics can be distinguished from other social sciences by the belief that most (all?) behavior can be explained by assuming that rational agents with stable, well-defined preferences interact in markets that (eventually) clear. An empirical result qualifies as an anomaly if it is difficult to "rationalize" or if implausible assumptions are necessary to explain it within the paradigm.
Volume
15
Page
219‐232
Number
1
Year
2001
Categories
Behavioral Insurance
Publications
Journal of Economic Perspectives
Authors
Thaler, Matthew Rabin And Richard H.