Friedman-Savage Double Inflection

basically that your level of risk adverseness changes as you go through time.
 
VWJETTY wrote:basically that your level of risk adverseness changes as you go through time.
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It’s not about time. The horizontal axis (the abscissa) is income, not time.
Your level of risk aversion changes as your level of income changes.
 
Utility vs. Risk
At low income levels and at very high income levels - The function / graph is concave (Risk averse) while in between graph is convex (Risk seeking).
try to explain with this - as to why people buy low payoff risky items - lottery tickets - while also insuring against low risks with low payoffs (flight insurance e.g.).
 
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