Al-Nowaihi, Ali; Dhami, Sanjit S. - 2010
probability below which the take-up of insurance drops dramatically. Expected utility (EU) fails on 1-4. Existing models of rank …. -- Decision making under risk ; Insurance ; Composite Prelec probability weighting functions ; Composite rank dependent utility … certain. (3) Buy inadequate insurance for very low probability events. (4) Keeping the expected loss fixed, there is a …