Self-Insurance and Self-Protection: A Nonexpected Utility Analysis
This paper studies the comparative statics of self-insurance and self-protection for individuals with rank-dependent expected utility preferences. In particular, proportional wealth risks, background risk, and limited liability are considered. Limited liability has a major impact on self-insurance and self-protection. It can reverse seemingly robust comparative static results for the case of self-insurance and can eliminate some puzzling ambiguities for the case of self-protection. The Geneva Papers on Risk and Insurance Theory (1993) 18, 131–146. doi:10.1007/BF01111466
Year of publication: |
1993
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Authors: | Konrad, Kai A. ; Skaperdas, Stergios |
Published in: |
The Geneva Risk and Insurance Review. - Palgrave Macmillan, ISSN 1554-964X. - Vol. 18.1993, 2, p. 131-146
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Publisher: |
Palgrave Macmillan |
Saved in:
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