In this paper we analyze insurance demand when the utility function depends both upon final wealth and the level of losses or gains relative to a reference point. Besides some comparative statics results, we discuss the links with first-order risk aversion, with the Omega measure, and with a tendency to over-insure modest risks that has been been extensively documented in real insurance markets

Eeckhoudt, L., Fiori, A., Rosazza Gianin, E. (2018). Risk Aversion, Loss Aversion, and the Demand for Insurance. RISKS, 6(2) [10.3390/risks6020060].

Risk Aversion, Loss Aversion, and the Demand for Insurance

Fiori, A
;
Rosazza Gianin, E
2018

Abstract

In this paper we analyze insurance demand when the utility function depends both upon final wealth and the level of losses or gains relative to a reference point. Besides some comparative statics results, we discuss the links with first-order risk aversion, with the Omega measure, and with a tendency to over-insure modest risks that has been been extensively documented in real insurance markets
Articolo in rivista - Articolo scientifico
first-order risk aversion; stochastic dominance; insurance; expected utility
English
2018
6
2
60
open
Eeckhoudt, L., Fiori, A., Rosazza Gianin, E. (2018). Risk Aversion, Loss Aversion, and the Demand for Insurance. RISKS, 6(2) [10.3390/risks6020060].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/204976
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