Probability weighting and insurance demand in a unified framework

被引：5
作者：
Jaspersen, Johannes G. [1 ]
Peter, Richard [2 ]
Ragin, Marc A. [3 ]
机构：
[1] Ludwig Maximilians Univ Munchen, LMU Munich Sch Management, Behav Risk Management & Insurance, Munich, Germany
[2] Univ Iowa, Henry B Tippie Coll Business, Dept Finance, Iowa City, IA USA
[3] Univ Georgia, Dept Insurance Legal Studies & Real Estate, Terry Coll Business, Athens, GA 30602 USA
来源：
GENEVA RISK AND INSURANCE REVIEW | 2023年 / 48卷 / 01期
关键词：
Insurance demand; Probability weighting; Non-expected utility; Comparative statics; Decreasing relative overweighting; D11; D81; G22; EXPECTED-UTILITY; PROSPECT-THEORY; RISK-AVERSION; DUAL THEORY; 2-STAGE LOTTERIES; CHOICE; PREFERENCES; EQUILIBRIA; ATTITUDES; DECISION;
D O I：
10.1057/s10713-022-00074-x
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We provide a comprehensive analysis of the impact of probability weighting on optimal insurance demand in a unified framework. We identify decreasing relative overweighting as a new local condition on the probability weighting function that is useful for comparative static analysis. We discuss the effects of probability weighting on coinsurance, deductible choice, insurance demand for low-probability, high-impact risks versus high-probability, low-impact risks, and insurance demand in the presence of nonperformance risk. Probability weighting can make better or worse predictions than expected utility depending on the insurance demand problem at hand.
引用
收藏
页码：63 / 109
页数：47
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