risk loving

economics

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von Neumann–Morgenstern utility function

  • In von Neumann–Morgenstern utility function

    …it is said to be risk loving. In a gambling context, a risk averter puts higher utility on the expected value of the gamble than on taking the gamble itself. Conversely, a risk lover prefers to take the gamble rather than settle for a payoff equal to the expected value…

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