Most decisions concerning (self-)insurance and self-protection have to be taken in situations in which a) the effort … under which ambiguity aversion raises the demand for (self-)insurance and self-protection. In particular, it is shown that … ambiguity prudence known as decreasing absolute ambiguity aversion (DAAA) is sufficient to give a clear and positive answer to …

The economic theory of decision making under risk has seen remarkable advances over the 50 years since Pratt’s (1964 …) characterization of risk aversion under expected utility. We review developments in three key areas to which Louis Eeckhoudt has made … significant contributions: (1) increases in risk and risk taking; (2) self-protection and risk aversion; and (3) higher (and lower …

preferences. Full insurance cannot be rejected. As the risk-sharing as-if-complete-markets theory might predict, estimated risk …We show how to use panel data on household consumption to directly estimate households’ risk preferences. Specifically …, we measure heterogeneity in risk aversion among households in Thai villages using a full risk-sharing model, which we …

risk averse anymore even if utility from divisible consumption is concave. I propose a definition of insurance in the … that bases insurance demand on risk aversion with important implications for policy and research. … such state-dependent indivisible consumption opportunities influences a person’s risk attitudes. In general, people are not …

of insurance. Third, we help answer the puzzle why the most risk averse are least likely to take up agricultural …We employ a novel approach to investigate the reasons for a low demand for agricultural insurance. We confirm that … farmers systematically undervalue agricultural insurance. First, we find that private transfers, mainly from family members …

and on the literature of imperfectly divisible consumption to argue that the general purpose of insurance is not a risk … transfer, but meeting a conditional need. In this way, insurance aligns the risk in one's ftnancial endowment with the risk in …I revisit the question of which motive underlies insurance demand. I draw on the literature of state-dependent utility …