of insurance. Third, we help answer the puzzle why the most risk averse are least likely to take up agricultural …We employ a novel approach to investigate the reasons for a low demand for agricultural insurance. We confirm that … farmers systematically undervalue agricultural insurance. First, we find that private transfers, mainly from family members …

-based industries such as finance, insurance and gambling. We sketch an alternative approach to modeling risky choice that focuses on …Most theories of risky choice postulate that a decision maker maximizes the expectation of a Bernoulli (or utility or … useful for out-of-sample prediction. Nor do we find practical applications of Bernoulli functions in major risk …

This paper analyzes optimal risk sharing among agents that are endowed with either expected utility preferences or with … dual utility preferences. We find that Pareto optimal risk redistributions and the competitive equilibria can be obtained … agent of dual utility maximizers. The representative agent of expected utility maximizers resembles an average risk …

Pareto optimal allocations and optimal risk sharing for coherent or convex risk measures as well as for insurance … applying inf-convolution of risk measures and convex analysis.In the recent literature, an increasing interest has been devoted … to quasiconvex risk measures, that is risk measures where convexity is replaced by quasiconvexity and cash-additivity is …

-based industries such as finance, insurance and gambling. We sketch an alternative approach to modeling risky choice that focuses on …Most theories of risky choice postulate that a decision maker maximizes the expectation of a Bernoulli (or utility or … useful for out-of-sample prediction. Nor do we find practical applications of Bernoulli functions in major risk …

insurance by strictly-risk averse agents and risk-neutral firms when they enjoy limited liability. When exposed to a bankrupting … decision to insure will depend on whether the benefits the insuree derives from insurance after having compensated the damaged …

We formalize a consumption-investment-insurance problem with the distinction of a state-dependent relative risk … cases in the literature, and illustrate the range of results in a disability model where the relative risk aversion is …

coefficient of relative risk aversion (CRRA) that is commensurate with a 100% investment in the risky asset is simulated. The … following parameters are varied: the riskless return, the market standard deviation, the market stock premium, and the skewness … upper bound of the market CRRA is 3.021 and the lower bound is 0.466. Log utility, which corresponds to a CRRA of 1, is not …

tractability with an online calculator.Reckoning can be used as a guide to decision-making under risk. We illustrate with examples … in lotteries and insurance. We compare reckoning with expected utility and with generalized utility theories. The theory … gives a novel explanation of risk aversion using the analysis of background risks …