Improving the risk concept: a revision of Arrow-Pratt theory in the context of controlled dynamic stochastic environments

In the literature on risk, one generally assume that uncertainty is uniformly distributed over the entire working horizon, when the absolute risk-aversion index is negative and constant. From this perspective, the risk is totally exogenous, and thus independent of endogenous risks. The classic procedure is "myopic" with regard to potential changes in the future behavior of the agent due to inherent random fluctuations of the system. The agent's attitude to risk is rigid. Although often criticized, the most widely used hypothesis for the analysis of economic behavior is risk-neutrality. This borderline case must be envisaged with prudence in a dynamic stochastic context. The traditional measures of risk-aversion are generally too weak for making comparisons between risky situations, given the dynamic �complexity of the environment. This can be highlighted in concrete problems in finance and insurance, context for which the Arrow-Pratt measures (in the small) give ambiguous.

Receipt from Pratt and Co.

Receipt from Pratt and Co. of Buffalo, New York, Wholesale Dealers in Hardware for payment on screws, fasteners, locks, keys and other hardware. This document is stained, July 21, 1876.

Receipt from Pratt and Company for brass rail

Receipt from Pratt and Company for brass rail, Aug. 17, 1876.

Receipt from Pratt and Company for hardware

Receipt from Pratt and Company for hardware, Aug. 22, 1876.

Receipt from Pratt and Company for bronze knobs

Receipt from Pratt and Company for bronze knobs, Aug. 29, 1876.

Receipt from Pratt and Company for payment on account

Receipt from Pratt and Company for payment on account, Sept. 1, 1876.

Credit to S.D. Woodruff from Pratt and Company for $150.00

Credit to S.D. Woodruff from Pratt and Company for $150.00, Sept. 7, 1876.

Receipt from Pratt and Company for bronze escutcheons

Receipt from Pratt and Company for bronze escutcheons, Sept. 9, 1876.

Receipt from Pratt and Company, New York for payment on account

Receipt from Pratt and Company, New York for payment on account, Oct. 1, 1876

Credit to S.D. Woodruff from Pratt and Company for $62.00

Credit to S.D. Woodruff from Pratt and Company for $62.00, Nov. 6, 1876.

Lumber and its uses; two correspondence courses. Part I by R.S. Kellogg, University of Wisconsin; Part II by M.B. Pratt, University of California.

Mode of access: Internet.

High temperature thermometry at Pratt & Whitney Aircraft - CANEL /

"Contract AT(30-1)-2789."

Matthew Pratt, 1734-1805,

"Edition of three hundred copies."