The Exponential Utility Function Assumes a Constant Aversion to Risk

question 40

True/False

The exponential utility function assumes a constant aversion to risk.

---

Definitions:

Classical Conditioning

A habituation procedure where two stimuli are paired frequently, and a reaction that initially occurs because of the second stimulus subsequently occurs due to the first stimulus exclusively.

Cognitive Map

A mental representation of one’s physical environment, facilitating navigation and understanding of spatial relationships.

Observational Learning

Learning that occurs through observing the behavior of others, also known as social learning or modeling.

Classical Conditioning

An educational method where learning happens by linking an external stimulus with a naturally existing stimulus.