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

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

Hardcover

Business GeneralEconomics

ISBN10: 0792396421
ISBN13: 9780792396420
Publisher: Springer Nature
Published: Sep 30 1995
Pages: 150
Weight: 0.81
Height: 0.56 Width: 6.26 Depth: 9.58
Language: English
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.

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