Eeckhoudt, L.; Gollier, C. - Groupe de Recherche en Économie Mathématique et … - 1998
It is often suggested that the larger the size of risk, the larger our willingness to pay (WTP) for a given reduction … of this risk. We show that this is not true in general in the expected utility model. We examine under which conditions … the WTP for a marginal reduction in the size of risk is increasing. We also examine the closely related question of …