Risk Loving
Definition
Preferring a risky outcome over a sure outcome with the same expected value. Implies a convex utility function.
Example
Buying lottery tickets when the expected payoff is below the price is risk-loving (or biased) behavior.
Preferring a risky outcome over a sure outcome with the same expected value. Implies a convex utility function.
Buying lottery tickets when the expected payoff is below the price is risk-loving (or biased) behavior.