Risk Aversion-(New Topic) MWG Definition 6.C,1: a decision maker is a risk averter(or displays risk aversion) if for any lottery F( the degenerate lottery that yields the amount xdF(x)with certainty is at least as good as the lottery F( itself If the decision-maker is always(for any FO indifferent between these two lotteries, we say that he is risk neutral Finally, we say that he is strictly risk averse if indifference holds only when the two lotteries are the same(i.e when F(isRisk Aversion– (New Topic) MWG Definition 6.C.1: A decision maker is a risk averter (or displays risk aversion) if for any lottery F(.) the degenerate lottery that yields the amount  xdFx with certainty is at least as good as the lottery F(.) itself. If the decision-maker is always (for any F(.)) indifferent between these two lotteries, we say that he is risk neutral. Finally, we say that he is strictly risk averse if indifference holds only when the two lotteriest are the same (i.e. when F(.) is