Bonilla, Claudio A.; Ruiz, Jose L. - In: Finance Research Letters 11 (2014) 3, pp. 219-223
We study the optimal insurance demand in the μ,σ space when the decision-maker faces a first-order risk increase. In particular, we investigate the effect of an increase in the expected damage when the variance is held constant. An unambiguous result is derived on insurance demand that differs...