degenerate) It follows directly from the definition that the decision-maker is risk averse if and only if: u(x)dF(x)<u(xdF(x)) This is Jensens inequality and it always hold is u(is concavedegenerate). It follows directly from the definition that the decision-maker is risk averse if and only if:  uxdFx  u  xdFx This is Jensen’s inequality and it always hold is u(.) is concave