Many decisions under risk involve alternatives with multiple and possibly non-financial attributes. In this paper, we characterize risk apportionment preferences in a bivariate setting. We distinguish between desirable and undesirable attributes and show how to adapt the theory to obtain...

This paper investigates how rural-urban income differentials interact with the risk coping motive to shape households' migration behavior. Using a model of migration behavior under agricultural income risk, our theoretical results suggest that while income differentials remain crucial in...

Empirical evidence suggests the existence of a positive relationship between fear of sickness (FS) - as measured by the level of future utility lost when sickness occurs - and the level of effort to prevent the occurrence of sickness. By looking theoretically at this issue, we develop new...

This chapter surveys the economic literature on prevention and precaution. Prevention refers as either a self-protection activity – i.e. a reduction in the probability of a loss – or a self-insurance activity – i.e. a reduction of the loss –. Precaution is defined as a prudent and...