Asano, Takao; Shibata, Akihisa - Institute of Economic Research, Kyoto University - 2010
Extending the Grossman [12] model of health capital into a stochastic one, we analyze how the presence of Knightian uncertainty about the efficacy of health care affects the optimal health investment behavior of individuals. Using Gilboa and Schmeidler's [11] model of maxmin expected utility...