attitude towards wealth. Risk attitude is completely determined by the curvature of vuand is independent of the value function … the expected value of a lottery to the latter, so they are weakly risk averse. Besides explaining behavioral … irregularities like the expected utility paradoxes of Allais and Rabin, CT also separates risk attitude in the strong sense from …

In this paper we analyze insurance demand when the utility function depends both upon final wealth and the level of …-order risk aversion, with the Omega measure, and with a tendency to over-insure modest risks that has been been extensively …