Non-Expected Utility and Risk Management A Special Issue of the Geneva Papers on Risk and Insurance Theory / edited by Christian Gollier, Mark J. Machina.

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
Corporate Author: SpringerLink (Online service)
Other Authors: Gollier, Christian (Editor), Machina, Mark J. (Editor)
Format: eBook
Language:English
Published: Dordrecht : Springer Netherlands : Imprint: Springer, 1995.
Edition:1st ed. 1995.
Series:Springer eBook Collection.
Subjects:
Online Access:Click to view e-book
Holy Cross Note:Loaded electronically.
Electronic access restricted to members of the Holy Cross Community.

MARC

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505 0 |a Introductory Note -- Non-Expected Utility and the Robustness of the Classical Insurance Paradigm -- Non-Expected Utility and the Robustness of the Classical Insurance Paradigm: Discussion -- The Comparative Statics of Deductible Insurance in Expected- and Non-Expected-Utility Theories -- Risk Aversion Concepts in Expected- and Non-Expected-Utility Models -- Government Action, Biases in Risk Perception, and Insurance Decisions -- A Comparison of the Estimates of Expected Utility and Non-Expected-Utility Preference Functionals -- Functional Form Problems in Modeling Insurance and Gambling. 
520 |a 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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