Self-protection with random costs
Document type :
Compte-rendu et recension critique d'ouvrage
Title :
Self-protection with random costs
Author(s) :
Journal title :
Insurance: Mathematics and Economics
Pages :
63-67
Publisher :
Elsevier
Publication date :
2021-05
ISSN :
0167-6687
English keyword(s) :
Risk aversion
Prudence
Prevention
Random costs of self-protection
Self-protection
Prudence
Prevention
Random costs of self-protection
Self-protection
HAL domain(s) :
Sciences de l'Homme et Société/Gestion et management
English abstract : [en]
We study the consequences of introducing random costs (as opposed to certain costs) on the propensity to implement self-protection actions, i.e. actions reducing the probability of a loss. Our analysis is performed in four ...
Show more >We study the consequences of introducing random costs (as opposed to certain costs) on the propensity to implement self-protection actions, i.e. actions reducing the probability of a loss. Our analysis is performed in four standard self-protection frameworks: (1) the one-period model in which the cost and benefit occur at the same period of time; (2) a variation of this one-period model where wealth in each state of nature is a random variable; (3) the one-period model where the cost of the self-protection action is only paid in the absence of loss; (4) the two-period model in which the cost of self-protection precedes its benefit. For each of these models we provide a set of conditions ensuring clear-cut effects to occur and a specific interpretation for each of them.Show less >
Show more >We study the consequences of introducing random costs (as opposed to certain costs) on the propensity to implement self-protection actions, i.e. actions reducing the probability of a loss. Our analysis is performed in four standard self-protection frameworks: (1) the one-period model in which the cost and benefit occur at the same period of time; (2) a variation of this one-period model where wealth in each state of nature is a random variable; (3) the one-period model where the cost of the self-protection action is only paid in the absence of loss; (4) the two-period model in which the cost of self-protection precedes its benefit. For each of these models we provide a set of conditions ensuring clear-cut effects to occur and a specific interpretation for each of them.Show less >
Language :
Anglais
Popular science :
Non
ANR Project :
Collections :
Source :
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