I provide new results on how risk preferences affect optimal prevention. I identify a
comparative risk aversion and a comparative downside risk aversion effect and highlight …

Technology risk arises when the effectiveness of self‐insurance and self‐protection activities
depends on exogenous factors or is only imperfectly known. It affects optimal behavior via a …

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 …

The author analyzes how risk preferences affect primary prevention for health risks using
Kihlstrom and Mirman (1974) transformation function approach. This ensures consistency of …

In this contribution to the longstanding risk theory debate on optimal self‐protection, we aim
to enrich the microeconomic modeling of self‐protection, in the wake of Ehrlich and Becker …

Promoting prevention is an important goal of public policy. Fifty years ago, Ehrlich and
Becker (J Polit Econ 80: 623–648, 1972) proposed a simple model of prevention (or self …

An important societal problem is that people underinsure against risks that are unlikely or
occur in the far future, such as natural disasters and long-term care needs. One explanation …

We investigate the impact of ambiguity attitudes on the willingness-to-pay (WTP) for index
insurance among female smallholders in Kenya. We gauge incentive-compatible measures …

Distortion risk measure (DRM) plays a crucial role in management science and finance
particularly actuarial science. Various DRMs have been introduced but little is discussed on …

Probability weighting function (PWF) is the psychological probability of a decision-maker for
objective probability, which reflects and predicts the risk preferences of decision-maker in …