Menegatti, Mario - In: Economics Bulletin 32 (2012) 3, pp. 2166-2173
This note shows that there exists a threshold level of optimal prevention for a risk neutral agent which separates … cases where a risk averse agent exerts less effort in prevention than a risk neutral agent and cases where she exerts more … prevention when prevention is low and higher prevention when prevention is high). Finally we demonstrate that the threshold level …