Master Certainty Equivalents & Risk Premia Graphically

Certainty Equivalents & Risk Premia Graphically | Micro Struggle:
In this video I talk about how to find the Certainty Equivalent and Risk Premium graphically for Risk Averse, Risk Loving, and Risk Neutral preferences. For each preference type I talk intuitively about why each graph makes sense as well as what sign the Risk Premium has for each type. I also talk about why the Certainty Equivalent makes sense for each Risk Preference Type.
I also review Jensen's Inequality
Timestamps:
0:00 - Review of Risk Preference Types
1:56 - Risk Averse Consumers
5:07 - Risk Loving Consumers
7:14 - Risk Neutral Consumers

[@Bill_in_your_econ_models]

Great video, thanks!

[@InCaseofEconStruggles]

Thanks Bill!

[@UseYourBrain00]

Thanks for the Info

[@InCaseofEconStruggles]

I’m glad it was helpful!