| Article ID: | iaor20103556 |
| Volume: | 56 |
| Issue: | 4 |
| Start Page Number: | 712 |
| End Page Number: | 715 |
| Publication Date: | Apr 2010 |
| Journal: | Management Science |
| Authors: | Eeckhoudt Louis, Denuit Michel M |
Many results involving expected utility theory call upon the notions of absolute risk aversion, prudence, and/or temperance. This paper exploits a representation of the Friedman–Savage utility premium (1948) to give a general foundation for such coefficients and for their higher-order extensions.