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Konrad, Kai A.; Skaperdas, Stergios (1993): Self-insurance and self-protection: A nonexpected utility analysis. In: The GENEVA Papers on Risk and Insurance Theory, Vol. 18, No. 2: pp. 131-146
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This paper studies the comparative statics of self-insurance and self-protection for individuals with rank-dependent expected utility preferences. In particular, proportional wealth risks, background risk, and limited liability are considered. Limited liability has a major impact on self-insurance and self-protection. It can reverse seemingly robust comparative static results for the case of self-insurance and can eliminate some puzzling ambiguities for the case of self-protection. © 1993 The Geneva Association.