Journal article
Multivariate prevention decisions: Safe today or sorry tomorrow?
Economics letters, Vol.128, pp.51-53
03/01/2015
DOI: 10.1016/j.econlet.2015.01.016
Abstract
We study multivariate prevention decisions by disentangling early and late prevention. We show how the modularity of prevention and several measures of prevention efficiency interact with the agent’s risk attitude. We derive comparative statics with respect to impatience, loss severity, and income.
•Disentangling early and late prevention.•Definition of several efficiency measures and prevention super- and submodularity.•Comparative statics with respect to impatience, loss size, and income.•Comparison of risk-neutral and risk-averse agents’ prevention decisions.•Unraveling implicit assumptions of aggregating different prevention components.
Details
- Title: Subtitle
- Multivariate prevention decisions: Safe today or sorry tomorrow?
- Creators
- Annette Hofmann - Hamburg School of Business AdministrationRichard Peter - Ludwig-Maximilians-Universität München
- Resource Type
- Journal article
- Publication Details
- Economics letters, Vol.128, pp.51-53
- Publisher
- Elsevier B.V
- DOI
- 10.1016/j.econlet.2015.01.016
- ISSN
- 0165-1765
- eISSN
- 1873-7374
- Language
- English
- Date published
- 03/01/2015
- Academic Unit
- Finance
- Record Identifier
- 9984380478302771
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