Wang, Xiao-Hong and Huang, Bao-An (2022) The Wealth Effects on Demand for Insurance under Ambiguity Aversion. pp. 56-63. ISSN 2456-9216
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Official URL: https://doi.org/10.9734/jemt/2022/v28i111055
Abstract
Under which condition does the optimal insurance demand decrease in wealth? In the expected utility model a decreasing concavity condition is necessary and sufficient for this result. However in general, the result does not hold under ambiguity aversion. By introducing several types of controlling relation about random loss variables, we constrained the structure of the ambiguity and obtained several unambiguous results. The results show that under these constraints the demand for insurance against ambiguous losses also decreases in wealth.
Item Type: | Article |
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Uncontrolled Keywords: | Decreasing aversion; smooth ambiguity aversion; decreasing concavity; optimal insurance demand |
Subjects: | Euro Archives > Social Sciences and Humanities |
Depositing User: | Managing Editor |
Date Deposited: | 01 Nov 2022 10:58 |
Last Modified: | 20 Sep 2023 04:43 |
URI: | http://publish7promo.com/id/eprint/32 |