risk neutral
/ˈrɪsk ˌnjuːtrəl/
indifference between certain outcomes and gambles of equal expected value
risk neutral in a sentence
“Corporations often behave as risk neutral for small bets.”
Origin of risk neutral
From risk + neutral (Latin neutralis of neuter gender)
Related Words
sunk cost
a past cost that cannot be recovered
opportunity cost
the value of the best alternative forgone
marginal utility
the additional satisfaction from consuming one more unit
diminishing returns
decreasing incremental output as input increases
pareto optimal
a state where no one can be made better off without making another worse off
revealed preference
inferring preferences from observed choices