@techreport{oai:shiga-u.repo.nii.ac.jp:00009837,
 author = {Sakai, Yasuhiro},
 issue = {No. A-13},
 month = {Nov},
 note = {Technical Report, The purpose of this paper is to carefully investigate the relationship between the
concepts of risk aversion and expected utility, with a focus on the constant-risk-aversion
function and its application to oligopoly theory. Whereas there is now a growing
literature in risk, uncertainty and the market, the operational theory of risk-averse
oligopoly has been rather underdeveloped so far ．One of the reasons for such
underdevelopment is that the established concept of risk aversion remains too abstract
rather than reasonably operational, whence very few economists have dared to study
the economic consequences of a change of risk aversion by firms.
In this paper, we attempt to combine the constant-absolute-risk aversion function
developed by K. J. Arrow and J. W. Pratt, two great economists of the 20th century, and
the normal distribution function invented by K.F. Gauss, a mathematical genius of the
19th century: The resulting situation may be called the KARA-NORMAL case. We
intend to invent a very useful mathematical theorem for this specific yet important case,
and then apply it to the theory of risk-averse oligopoly. In particular, the impact of
increasing risk aversion on the outputs of duopolies are carefully examined. It is
shown among other things that the comparative static results depend on the degree of
risk aversion and the state of product differentiation., CRR Discussion Paper, Series A, No. A-13, pp. 1-22},
 title = {Risk Aversion and Expected Utility : The Constant-Absolute-Risk Aversion Function and its Application to Oligopoly},
 year = {2014}
}