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.