Abstract
In this paper I introduce a concept of simple strategy and de fine three kinds of such strategies. For three classes of utility functions - CARA, DARA and CRRA I state and prove equivalent characterizations in terms of the corresponding simple strategy characteristics and the corresponding properties of buying and selling price. I also prove an extension of famous Pratt (1964) theorem on comparative risk aversion. More speci fically, I show that buying price for a lottery can be used alternatively to other measures including selling price to compare risk aversion across individuals. Additionally a number of propositions on both selling and buying price for a lottery and CRRA utility class are proved.
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