In multi-period insurance contract, the premiums that the insured must pay increase whenever he files a claim. Hence in this case the buyer of insurance faces a problem which does not exist in one period contracts. Namely: he must decide for which damages he should file a claim and for which he...

In automobile insurance the premium rate which the insured must pay increases whenever he files a claim. Here we present the optimal claims strategy of the insured. It is shown that the insured will file a claim only if the damage exceeds some critical value which depends on his premium rate and...

In automobile insurance the premium rate which the insured must pay increases whenever he files a claim. Here we present the optimal claims strategy of the insured. It is shown that the insured will file a claim only if the damage exceeds some critical value which depends on his premium rate and...

This paper introduces a model-independent measure of aggregate idiosyncratic risk, which does not require estimation of market betas or correlations and is based on the concept of gain from portfolio diversification. The statistical results and graphical analyses provide strong evidence that...

We investigate whether risk seeking or non-concave utility functions can help to explain the cross-sectional pattern0 of stock returns. For this purpose, we analyze the stochastic dominance efficiency classification of the value-weighted market portfolio relative to benchmark portfolios based on...

Purpose – This exploratory, interdisciplinary, cross‐cultural study attempt to examine the hypothesis that in a country, where entrepreneurs have high status, individuals will describe themselves as more entrepreneurial, will exhibit greater risk‐taking tendency and more will be involved...