This paper analyzes optimal prevention expenditures in a situation of multiple correlated risks. We focus on … deviation of the probability of joint losses from the uncorrelated case. If prevention concerns only one risk, introducing a … negatively correlated exogenous risk increases the level of prevention expenditures. If prevention expenditures may be invested …

We study multivariate prevention decisions by disentangling early and late prevention. We show how the modularity of … prevention and several measures of prevention efficiency interact with the agent’s risk attitude. We derive comparative statics …