À propos de la tempérance

Abstract

The concept of prudence is nowadays almost as well accepted as that of risk aversion. We show that the concept of temperance deserves a similar status since it rests on the same basic ideas as the other two ones. The analysis also specifies the link which exists in the expected utility model between on the one hand the signs of the 3rd and 4th derivatives of the utility function and on the other hand the decision maker's attitude towards the skewness and kurtosis of a distribution. © Presses de Sciences Po. Tous droits réservés pour tous pays.