Self-insurance and self-protection: A nonexpected utility analysis

Konrad, Kai A. und 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

Abstract

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.

• Item Type: Journal article
• Form of publication: Publisher's Version
• Keywords: Self-Insurance, Self-Protection, Rank-Dependent Utility, Limited Liability
• Faculties: Economics > Chairs > MPI for Tax Law and Public Finance
• Subjects: 300 Social sciences > 330 Economics
• ISSN: 0926-4957
• Language: English