Optimal insurance with background risk: An analysis of general dependence structures
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DOI: 10.1007/s00780-020-00429-0
Abstract: In this paper, we consider an optimal insurance problem from the perspective of a risk-averse individual who faces an insurable risk as well as some background risk and wants to maximise the expected utility of… read more here.
Keywords: risk; background risk; general dependence; insurance ... See more keywords
OPTIMUM INSURANCE CONTRACTS WITH BACKGROUND RISK AND HIGHER-ORDER RISK ATTITUDES
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DOI: 10.1017/asb.2018.20
Abstract: Abstract In this paper, we study an optimal insurance problem in the presence of background risk from the perspective of an insured with higher-order risk attitudes. We introduce several useful dependence notions to model positive… read more here.
Keywords: risk; background risk; insurance; risk attitudes ... See more keywords
High background risk induces risk allocation rather than generalized neophobia in the fathead minnow
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DOI: 10.1093/beheco/arz094
Abstract: To cope with the heterogeneous nature of predation and the trade-off between predator avoidance and foraging, prey animals have evolved several cognitive rules. One of these is the risk allocation hypothesis, which predicts that in… read more here.
Keywords: hypothesis; background risk; risk; risk allocation ... See more keywords