| Article ID: | iaor20043556 |
| Country: | Hungary |
| Volume: | 32 |
| Issue: | 3/4 |
| Start Page Number: | 127 |
| End Page Number: | 135 |
| Publication Date: | Jan 2001 |
| Journal: | Szigma |
| Authors: | Varga Jzsef |
Sufficient conditions to guarantee properness and weak properness properties in the case of independent risks are discussed in this paper. Proper risk aversion should have important consequences in applications. For example, properness guarantees that the demand in insurance and in other forms of hedging does not decrease as the number of independent unfavourable risks increase. Examples of utility functions violating the properness property are also reported.