The Effect of Ambiguity Aversion on Insurance and Self-protection

Alary, David, Gollier, Christian and Treich, Nicolas (2013) The Effect of Ambiguity Aversion on Insurance and Self-protection. The Economic Journal, vol. 123 (n° 573). pp. 1188-1202.

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Official URL: http://tse-fr.eu/pub/27218

Abstract

In this paper, we show that ambiguity aversion always raises the demand for self-insurance and the insurance overage, but may decrease the demand for self-protection. We also characterize the optimal insurance design under ambiguity aversion, and exhibit a case in which the straight deductible contract is optimal as in the expected utility model.

Item Type: Article
Language: English
Date: December 2013
Refereed: Yes
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 09 Jul 2014 17:36
Last Modified: 07 Mar 2018 13:22
OAI ID: oai:tse-fr.eu:27218
URI: http://publications.ut-capitole.fr/id/eprint/15628

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