As in any research field, risk theory has its important questions, results, and paradoxes, as well as its seminal … papers and key authors. Louis Eeckhoudt has been a key author in the field of risk theory. To celebrate his many … contributions and continue the development of theories of decision making under risk, the Toulouse School of Economics hosted “Risk …

Most decisions concerning (self-)insurance and self-protection have to be taken in situations in which a) the effort … under which ambiguity aversion raises the demand for (self-)insurance and self-protection. In particular, it is shown that … ambiguity prudence known as decreasing absolute ambiguity aversion (DAAA) is sufficient to give a clear and positive answer to …

reduction (self-protection) so that correlation becomes endogenous. If prevention concerns only one risk, introducing a second … exogenous risk increases the level of prevention expenditures, even if correlation is negative. If prevention expenditures may … increased dependence increases aggregate prevention expenditures, but not necessarily prevention expenditures for each risk due …

The economic theory of decision making under risk has seen remarkable advances over the 50 years since Pratt’s (1964 …) characterization of risk aversion under expected utility. We review developments in three key areas to which Louis Eeckhoudt has made … significant contributions: (1) increases in risk and risk taking; (2) self-protection and risk aversion; and (3) higher (and lower …

the expected value of a lottery to the latter, so they are weakly risk averse. Besides explaining behavioral … irregularities like the expected utility paradoxes of Allais and Rabin, CT also separates risk attitude in the strong sense from … attitude towards wealth. Risk attitude is completely determined by the curvature of vuand is independent of the value function …

specification includes two parameters: one for ambiguity attitudes and another for risk attitudes. We also estimate a three …

preferences. Full insurance cannot be rejected. As the risk-sharing as-if-complete-markets theory might predict, estimated risk …We show how to use panel data on household consumption to directly estimate households’ risk preferences. Specifically …, we measure heterogeneity in risk aversion among households in Thai villages using a full risk-sharing model, which we …