Survival risks, intertemporal consumption, and insurance: the case of distorted probabilities

DOI10.1016/J.INSMATHECO.2005.09.004MaRDI QIDQ2492178zbMATH OpenOpenAlexFDO

Authors Han Bleichrodt, Louis Eeckhoudt

Publication date 9 June 2006

Published in Insurance Mathematics \& Economics (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1016/j.insmatheco.2005.09.004

zbMATH Keywords

cost--benefit analysisintertemporal consumptionnon-expected utilityprobability distortionsurvival risks

Mathematics Subject Classification ID

Consumer behavior, demand theory (91B42)

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Cites work

• Advances in prospect theory: cumulative representation of uncertainty
• Curvature of the Probability Weighting Function
• Dutch books: Avoiding strategic and dynamic complications, and a comonotonic extension
• Eliciting von Neumann-Morgenstern Utilities When Probabilities Are Distorted or Unknown
• scientific article; zbMATH DE number 1510510 (Why is no real title available?)
• Money does not induce risk neutral behavior, but binary lotteries do even worse
• On the definition and age-dependency of the value of a statistical life
• Options traders exhibit subadditive decision weights
• Parameter-Free Elicitation of Utility and Probability Weighting Functions
• Probabilistic insurance
• Probability weighting and utility curvature in QALY-based decision making
• The Dual Theory of Choice under Risk
• The Probability Weighting Function
• Violations of the betweenness axiom and nonlinearity in probability

Cited in

(7)

• A rank-dependent utility model of uncertain lifetime
• A parsimonious model of subjective life expectancy
• The connection between distortion risk measures and ordered weighted averaging operators
• REACHING A BEQUEST GOAL WITH LIFE INSURANCE: AMBIGUITY ABOUT THE RISKY ASSET'S DRIFT AND MORTALITY'S HAZARD RATE
• A life-cycle model with ambiguous survival beliefs
• Who saves more, the naive or the sophisticated agent?
• On cross-risk vulnerability

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