Risk Aversion and Risk Seeking

This video explains risk aversion and risk seeking on the classic utility function graph and on a prospect theory graph.
0:00 - Overview
1:08 - Risk Aversion (Positive realm)
6:24 - Risk Seeking (Negative realm)

Пікірлер: 18

  • @sanafarahani6472
    @sanafarahani64723 ай бұрын

    Thank you. you explained so clear. wish to upload more vidoes about Expected utility theory

  • @dfdfgdfkih
    @dfdfgdfkih Жыл бұрын

    You save my life. Love you so much!

  • @Hogne.Sandanger
    @Hogne.Sandanger3 ай бұрын

    Thank you for great explanations about prospect theory. However, I miss an explanation of how skewed decision weights, particularly the possibility effect and the certainty effect, affect risk aversion. According to the fourfold pattern the possibility effect overrides the curvature of the value function on both sides at low probabilities.

  • @haoli4975
    @haoli4975 Жыл бұрын

    this vid is absolutely amazing!

  • @aleksandartodorovic8836
    @aleksandartodorovic88363 жыл бұрын

    Great explanations. Thank you so much.

  • @jeetarthshrotriya8944
    @jeetarthshrotriya89443 жыл бұрын

    Amazing explanation

  • @fucknestle9976
    @fucknestle99763 жыл бұрын

    i like being able to say "this captures reality" after drawing an econ graph

  • @silviacamacho8373
    @silviacamacho83732 жыл бұрын

    Thank you! 😀

  • @ajitkhanal507
    @ajitkhanal5072 жыл бұрын

    Thank you!

  • @pongsakornnimphaya132
    @pongsakornnimphaya132 Жыл бұрын

    Thank you

  • @StephanieHughesDesign
    @StephanieHughesDesign5 ай бұрын

    Excellent video. As an Econ. major undergrad and MBA Fin. et Econ, I never took any Behav. Econ courses. This is stellar. Prof. Ashley makes my post grad MBA Finance Prof. look like a smug rank amateur. What texts are selected for this Behav. Econ curriculum course. I would like to buy the assigned textbooks and complete this entire course.

  • @AshleyHodgson

    @AshleyHodgson

    5 ай бұрын

    Texts: Thinking Fast and Slow by Daniel Kahneman Misbehaving by Richard Thaler Predictably Irrational by Dan Ariely They're all really fun!

  • @MsCher615
    @MsCher6154 ай бұрын

    How can we insert the risk neutral on this?

  • @MsCher615
    @MsCher6154 ай бұрын

    Can you have a video ma'am having the risk averse, risk seeking, and risk neutral in the same example. Thankyou maam

  • @Momo-yl3hs
    @Momo-yl3hs Жыл бұрын

    I really didn’t get anything these graphs makes things more complicated

  • @Arashhh85
    @Arashhh85 Жыл бұрын

    Positive Utility is the way people behave and it is logical, the negative prospect theory is how people behave and is illogical.

  • @MsCher615

    @MsCher615

    4 ай бұрын

    Can you help me understand further more about this please

  • @user-zg8qb4dm1p
    @user-zg8qb4dm1p6 ай бұрын

    Admire you madam lecturer