Non-Expected Utility and Risk Management : A Special Issue of the Geneva Papers on Risk and Insurance Theory /

Expected utility provides simple, testable properties of the optimum behavior that should be displayed by risk-averse individuals in risky decisions. Simultaneously, given the existence of paradoxes under the expected utility paradigm, expected utility can only be regarded as an approximation of act...

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Bibliographic Details
Main Author: Gollier, Christian
Corporate Author: SpringerLink (Online service)
Other Authors: Machina, Mark
Format: eBook
Language:English
Published: Dordrecht : Springer Netherlands, 1995.
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Online Access:Connect to the full text of this electronic book
Description
Summary:Expected utility provides simple, testable properties of the optimum behavior that should be displayed by risk-averse individuals in risky decisions. Simultaneously, given the existence of paradoxes under the expected utility paradigm, expected utility can only be regarded as an approximation of actual behavior. A more realistic model is needed. This is particularly true when treating attitudes toward small probability events: the standard situation for insurable risks. Non-Expected Utility and Risk Management examines whether the existing results in insurance economics are robust to more general models of behavior under risk.
Item Description:Electronic resource.
Physical Description:1 online resource (150 pages)
ISBN:9789401724401 (electronic bk.)
9401724407 (electronic bk.)