This item still needs to be validated !
Title: The economics of insurance: a review and some recent developments
Authors: Denuit, M
Dhaene, Jan
Van Wouwe, Martine
Issue Date: 1999
Publisher: K.U.Leuven - Departement Toegepaste Economische Wetenschappen
Series Title: DTEW Research Report 9917 pages:1-35
Abstract: The present paper is devoted to different methods of choice under risk in an actuarial setting. The classical expected utility theory is first presented, and its drawbacks are underlined. A second approach based on the so-called distorted expectation hypothesis is then described. It will be seen that the well-known stochastic dominance as well as the stop-loss order have common interpretations in both theories, while defining higher degree stochastic orders leads to different concepts. The aim of this paper is to emphasize the similarities of the two approaches of choice under risk as well as to point out their major differences.
Publication status: published
KU Leuven publication type: IR
Appears in Collections:Research Center Insurance, Leuven

Files in This Item:
File Status SizeFormat
OR_9917.pdf Published 812KbAdobe PDFView/Open


All items in Lirias are protected by copyright, with all rights reserved.