Question: Expected utility theory suggests that all risk preferences are due to diminishing marginal utility of wealth. We have briefly discussed some reasons for doubting this

Expected utility theory suggests that all risk preferences are due to diminishing marginal utility of wealth. We have briefly discussed some reasons for doubting this hypothesis. Why might diminishing marginal utility of wealth be related to risk preferences? What other explanations for risk behavior can you think of? How would these alternative motives suggest behavior that is different from diminishing marginal utility of wealth?

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