The name is absent



Footnotes

1 Because of this linearity of the payoff in random factor, Sinn (1983) referred to a set of
random variables for which the LS condition holds as a linear distribution class.

2 It is also known that EU theory derives MS functions under alternative restrictions such as
quasi utility, normal distribution and the combination of semi-logarithmic utility and
lognormal distribution. The derived MS functions have to be properly restricted (see, Tobin
1958, 1969; Chipman 1973; Feldstein 1969). Recently, it was established that the rank
dependent expected utility theory, a generalized EU theory, also derives MS function under
the monotone mean-preserving spread (Ormiston and Quiggin 1994).

3 As for the restriction imposed on MS function, Property 3 is not necessary, as it is
automatically fulfilled when Properties 1 and 2 are satisfied.

4 Similarly, it is also shown that the MS function, V (σ, μ) = (μs - ση )η (1 δ η; μs - ση > θ)

exhibits the combination of IARA and DARA.

5 Unlike Saha (1997), this study limits the discussion to the case of γ0 .

28



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