Non-Expected Utility and Risk Management: A Special Issue of the Geneva Papers on Risk and Insurance Theory

Gollier, Christian; Machina, Mark J.

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.

Details

Published by: Springer

Publication Date: 2010-12-05

Format: Paperback

ISBN-10: 9789048157990

ISBN-13: 9789048157990

DOI: 10.1007/978-94-017-2440-1

Dimensions: 235cm x155cm

Pages: 150