A theory of insurance and gambling : replacing risk preferences with quid pro quo /
"This book holds that the demand for insurance is best understood, not by focusing on risk preferences, but by focusing on the additional income, the states of the world that trigger the income transfer from the insurer, and the value of income (and consumption) in those states. It is unlikely...
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| Format: | eBook |
| Language: | English |
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New York, NY :
Oxford University Press,
[2024]
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| Online Access: | Connect to the full text of this electronic book |
| Summary: | "This book holds that the demand for insurance is best understood, not by focusing on risk preferences, but by focusing on the additional income, the states of the world that trigger the income transfer from the insurer, and the value of income (and consumption) in those states. It is unlikely that demand can be understood if the analyst limits the gain from insurance to coverage of the uninsured loss alone. It is also unlikely that the demand can be understood if the analyst limits the analysis to a movement along a static "risk averse" utility or value function, rather than acknowledging that a shift of this function, and thus in the utility or value of additional income, often coincides with the occurrence of the event that triggers the payout"-- |
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| Physical Description: | 1 online resource (x, 262 pages) : illustrations |
| Bibliography: | Includes bibliographical references and index. |
| ISBN: | 9780197687956 0197687954 0197687946 9780197687932 0197687938 9780197687949 |