Risk aversion loss aversion, and the demand for insurance

In this paper we analyze insurance demand when the utility function depends both upon final wealth and the level of losses or gains relative to a reference point. Besides some comparative statics results, we discuss the links with first-order risk aversion, with the Omega measure, and with a tendency to over-insure modest risks that has been been extensively documented in real insurance markets.

MoreLess

Year of publication:	2018
Authors:	Eeckhoudt, Louis ; Fiori, Anna Maria ; Gianin, Emanuela Rosazza
Published in:	Risks. - Basel : MDPI, ISSN 2227-9091. - Vol. 6.2018, 2, p. 1-19
Publisher:	Basel : MDPI
Subject:	first-order risk aversion \| stochastic dominance \| insurance \| expected utility

freely available

Full text |

More access options

doi.org

Check Google Scholar

In libraries world-wide (WorldCat)

In German libraries (KVK)

subito order

I need help

More details

Type of publication:	Article
Type of publication (narrower categories):	Article
Language:	English
Other identifiers:	10.3390/risks6020060 [DOI] 1025671880 [GVK] hdl:10419/195852 [Handle]
Source:	EconStor

Persistent link: https://www.econbiz.de/10011996618