Non-Expected Utility and The Robustness of the Classical Insurance Paradigm: Discussion

This paper discusses some aspects of the robustness of the classical insurance paradigm with respect to departures from the independence axiom of expected utility theory. The discussion focuses on the significance of the distinction between risk aversion and outcome convexity and the role of smoothness of the preferences in non-expected-utility analysis of insurance. The Geneva Papers on Risk and Insurance Theory (1995) 20, 51–56. doi:10.1007/BF01098957