Prevention efforts often involve spillovers, positive or negative, on other individuals, but this is neglected by standard models of risk prevention.We analyze strategic interaction between decision makers whose effort affects each other's risk.We characterize response functions and Nash...

We study risk effects, including higher-order risk effects, on optimal decision making in the linear-payoff model. This model includes the standard portfolio problem, the coinsurance problem, the problem of output choice with a risky price or a risky cost, and the problem of hedging a risky...