Jaspersen, Johannes G.; Peter, Richard; Ragin, Marc A. - In: The Geneva Risk and Insurance Review 48 (2022) 1, pp. 63-109
We provide a comprehensive analysis of the impact of probability weighting on optimal insurance demand in a unified … framework. We identify decreasing relative overweighting as a new local condition on the probability weighting function that is … useful for comparative static analysis. We discuss the effects of probability weighting on coinsurance, deductible choice …