Synopses & Reviews
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 more 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 more general models of behavior under risk.
Table of Contents
Editor' Note. Introductory Note; C. Gollier.
Non-Expected Utility and the Robustness of the Classical Insurance Paradigm; M.J. Machina.
Non-Expected Utility and the Robustness of the Classical Insurance Paradigm: Discussion; E. Karni.
The Comparative Statics of Deductible Insurance in Expected and Non-expected Utility Theories; E.E. Schlee.
Risk Aversion Concepts in Expected and Non- expected Utility Models; M. Cohen.
Government Action, Biases in Risk Perception, and Insurance Decisions; W.K. Viscusi.
A Comparison of the Estimates of EU and non-EU Preference Functionals Using Data from Pairwise Choice and Complete Ranking Experiments; E. Carbone, J.D. Hey.
Functional Form Problems in Modelling Insurance and Gambling; W.E. Diewert.