Optimality of deductible: a characterization, with application to Yaari’s dual theory
Journal article: The main purpose of this paper is to show that left-monotone risk aversion, a meaningful refinement of strong risk aversion, characterizes decision makers for whom deductible insurance is optimal. A second goal is to prove that the deductible’s computation is particularly tractable in the case of Yaari’s decision makers.
Author(s)
Alain Chateauneuf, Michèle Cohen, Mina Mostoufi
Journal
- Theory and Decision
Date of publication
- 2022
Keywords
- Yaari’s model
- Jewitt’s left-monotone risk aversion
- Optimality of deductible
Pages
- 569–580
URL of the HAL notice
Version
- 1
Volume
- 92