SELF-INSURANCE AND SELF-PROTECTION - A NONEXPECTED UTILITY ANALYSIS

Authors
KONRAD KA SKAPERDAS S
Citation
Ka. Konrad et S. Skaperdas, SELF-INSURANCE AND SELF-PROTECTION - A NONEXPECTED UTILITY ANALYSIS, Geneva papers on risk and insurance. Theory, 18(2), 1993, pp. 131-146
Citations number
34
Categorie Soggetti
Business Finance",Economics
Journal title
Geneva papers on risk and insurance. Theory → ACNP
ISSN journal
09264957
Volume
18
Issue
2
Year of publication
1993
Pages
131 - 146
Database
ISI
SICI code
0926-4957(1993)18:2<131:SAS-AN>2.0.ZU;2-2
Abstract
This paper studies the comparative statics of self-insurance and self- protection for individuals with rank-dependent expected utility prefer ences. In particular, proportional wealth risks, background risk, and limited liability are considered. Limited liability has a major impact on self-insurance and self-protection. It can reverse seemingly robus t comparative static results for the case of self-insurance and can el iminate some puzzling ambiguities for the case of self-protection.