Self-Insurance, Self-Protection and Increased Risk Aversion: An Intertemporal Reinvestigation
نویسندگان
چکیده
منابع مشابه
Self-Insurance and Self-Protection as Public Goods
Most pure public goods like lighthouses, dams, or national defense provide utility mainly by insuring against hazardous events. Our paper focuses on this insurance character of public goods. As for private actions against hazardous events, one can distinguish between self-insurance (SI) and self-protection (SP) also in the context of public goods. For both cases of SI and SP we analyze efficien...
متن کاملwww.econstor.eu Self-Insurance and Self-Protection as Public Goods
Many public goods like dams, fire departments, and lighthouses do not provide direct utility but act more as insurance devices against floods, fire, and shipwreck. They either diminish the probability or the size of the loss. We extend the public good model with this insurance aspect and generalize Samuelson’s efficient allocation rule when self-insurance and self-protection expenditures are pu...
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We study optimal investment in self-protection of insured individuals when they face interdependencies in the form of potential contamination from others. If individuals cannot coordinate their actions, then the positive externality of investing in self-protection implies that, in equilibrium, individuals underinvest in self-protection. Limiting insurance coverage through deductibles or selling...
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The paper develops an axiomatic framework that derives a new relation between discounting and uncertainty evaluation. The von Neumann and Morgenstern axioms give rise to a richer form of risk attitude than captured in the discounted expected utility standard model. I derive three models that permit a more comprehensive uncertainty evaluation. These preference representations differ in the consi...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2013
ISSN: 1556-5068
DOI: 10.2139/ssrn.2321607