Non-Expected Utility and Risk Management

Non Expected Utility and Risk Management Expected utility provides simple testable properties of the optimum behavior that should be displayed by risk averse individuals in risky decisions Simultaneously given the existence of paradoxes un

  • Title: Non-Expected Utility and Risk Management
  • Author: Christian Gollier Mark J. Machina
  • ISBN: 9789401724418
  • Page: 193
  • Format: Paperback
  • Expected utility provides simple, testable properties of the optimum behavior that should be displayed by risk averse individuals in risky decisions Simultaneously, given the existence of paradoxes under the expected utility paradigm, expected utility can only be regarded as an approximation of actual behavior A realistic model is needed This is particularly true wExpected utility provides simple, testable properties of the optimum behavior that should be displayed by risk averse individuals in risky decisions Simultaneously, given the existence of paradoxes under the expected utility paradigm, expected utility can only be regarded as an approximation of actual behavior A realistic model is needed This is particularly true when treating attitudes toward small probability events the standard situation for insurable risks Non Expected Utility and Risk Management examines whether the existing results in insurance economics are robust to general models of behavior under risk.

    One thought on “Non-Expected Utility and Risk Management”

    Leave a Reply

    Your email address will not be published. Required fields are marked *