Abstract
The assumption of constant risk aversion often leads to a considerable simplification of decision theoretic analyses. It is shown that this restriction on constant risk aversion permits the description of a wide range of risk averse patterns between the extreme cases of risk neutrality and the exclusive orientation on the pessimistic maxmin criterion. In particular, a new axiomatic foundation of the constant risk aversion is given and a series of properties for the certainty equivalent are derived. Possible applications are shown by the treatment of risk premiums, values of information, portfolio selection, capital market theory and syndicates.
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