Journal article
The economics of self-protection
The Geneva risk and insurance review, Vol.49(1), pp.6-35
02/25/2024
DOI: 10.1057/s10713-023-00094-1
Abstract
Self-protection is a costly activity that reduces the probability of an unfavorable outcome. Even the simplest model with a binary risk of loss and expected utility of final wealth produces interesting comparative statics that are by no means trivial. This article provides a selective survey of the economics of self-protection. It puts particular emphasis on the contributions made by members of the European Group of Risk and Insurance Economists and research published in the Geneva Risk and Insurance Review. The article provides a conceptual framework to catalog existing models of self-protection, discusses the tension between risk aversion and downside risk aversion, reveals the role of probability thresholds, surveys extensions to non-expected utility, and highlights the recent surge in two-period models. Ideas for future research directions are also developed.
Details
- Title: Subtitle
- The economics of self-protection
- Creators
- Richard Peter - University of Iowa
- Resource Type
- Journal article
- Publication Details
- The Geneva risk and insurance review, Vol.49(1), pp.6-35
- Publisher
- Springer Nature
- DOI
- 10.1057/s10713-023-00094-1
- ISSN
- 1554-964X
- eISSN
- 1554-9658
- Number of pages
- 30
- Language
- English
- Electronic publication date
- 02/25/2024
- Academic Unit
- Economics; Finance
- Record Identifier
- 9984571386502771
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