We consider the problem of the optimal use of a good whose consumption can produce damages in the future. Potential damages are proportional to the accumulated lifetimeconsumption of the good. Scientific progress is made over time that provides information on the distribution of the intensity of...

We examine in this paper the effect of an early resolution of uncertainty on savings. We show that this effect is in general ambiguous. We provide necessary and sufficient conditions on the utility function which guarantee that an early resolution of uncertainty reduces current savings for...

In this paper, we show how a differentiated tax treatment of corporate losses and corporate profits induces the firm to behave in a very specific risk-averse manner.

We examine an important class of decision problem under uncertainty that entails the standarrd portfolio problem and the demand for coinsurance. The agent faces a controllable risk -his demand for a risky asset for example- and a background risk. We determine how a change in the distribution in...

We consider a model in which the agent faces two independant risks of losswith different probabilities of occurence and (possibly) different levels of potential loss. We show that it is optimal to select a deductable for the low probability event that is not larger than the optimal deductable...

It is often suggested that the larger the size of risk, the larger our willingness to pay (WTP) for a given reduction of this risk. We show that this is not true in general in the expected utility model. We examine under which conditions the WTP for a marginal reduction in the size of risk is...

La litterature sur les decisions d'investissement en incertitude a largement souligne l'interet de reporter la mise en oeuvre des investissements les plus risques en attendant l'arrivee de nouvelles informations sur leurs rentabilites. Nous utilisons le modele standard de choix de portefeuille...

In this paper we show how the order of Linear Stochastic Dominance proposed by Gollier (1995) can be applied to situations with dependent risky assets.

In addition to showing the connection between parallel contingent and noncontingent risk comparison problems, we articulate a method for solving both kinds of problems using the "basis" approach. The basis approach has often been used implicitly, but we argue that there is value to making its...