Risk Neutral

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Risk Neutral

A situation in which an investor effectively ignores risk in making investment decisions. Given two investments with different levels of riskiness, a risk neutral investor considers only the expected return from each investment. As such, being risk neutral differs significantly from both risk aversion and risk seeking.

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Risk-neutral

References in periodicals archive ?

The only step in the existence proof that differs from the risk neutral case considered by Dasgupta and Maskin [1986b] is in showing that [[[sigma].sup.N].sub.i=1] [U.sup.i](a), where a = ([a.sup.1],...,[a.sup.N]) is the vector of agents' locations, or pure strategies, and [U.sup.i](.)'s are individual utilities as functions of locations, is upper semicontinuous in its arguments.

SPATIAL COMPETITION WITH THREE FIRMS: AN EXPERIMENTAL STUDY

The remaining individuals are considered risk neutral. These division values are arbitrary.

Impact of seat belt use on driving behavior

With risk neutral firms and risk-averse workers, the presence of moral hazard in search behavior will induce contracts in which the firm bears some but not all of the risk of uncertain unemployment spell duration.