Arbeitspapier
Risk attitudes with state-dependent indivisibilities in consumption
Some consumption opportunities are both indivisible and only valuable in particular tates of nature. The existence of such state-dependent indivisible consumption opportunities influences a person's risk attitudes. In general, people are not risk averse anymore even if utility from divisible consumption is concave. I propose a definition of insurance in the context of state-dependent preferences and investigate the different motives underlying insurance demand. The same reasons that rule out risk aversion turn out to be the basis of a desire to insure. This calls into question the standard approach that bases insurance demand on risk aversion with important implications for policy and research.
- ISBN
-
978-3-86788-933-9
- Sprache
-
Englisch
- Erschienen in
-
Series: Ruhr Economic Papers ; No. 805
- Klassifikation
-
Wirtschaft
Microeconomic Behavior: Underlying Principles
Criteria for Decision-Making under Risk and Uncertainty
- Thema
-
risk preferences
indivisible consumption
insurance
gambling
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Fels, Markus
- Ereignis
-
Veröffentlichung
- (wer)
-
RWI - Leibniz-Institut für Wirtschaftsforschung
- (wo)
-
Essen
- (wann)
-
2019
- DOI
-
doi:10.4419/86788933
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Fels, Markus
- RWI - Leibniz-Institut für Wirtschaftsforschung
Entstanden
- 2019
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