Risk aversion and expected utility of consumption over time
The calibration theorem by Rabin [Rabin, M., 2000a. Risk aversion and expected utility theory: A calibration theorem. Econometrica 68, 1281-1292; Rabin, M., 2000b. Diminishing marginal utility of wealth cannot explain risk aversion. In: Kahneman, D., Tversky, A. (Eds.), Choices, Values and Frames. Cambridge University Press] implies that seemingly plausible small-stake choices under risk imply imp
