Prudence probability premium
AbstractPrudence probability premium is defined in the risk apportionment model (Eeckhoudt and Schlesinger, 2006). For an increase in downside risk, we show sufficient conditions for comparing the probability premiums between two individuals when the apportioned risk is small and large.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 109 (2010)
Issue (Month): 1 (October)
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Web page: http://www.elsevier.com/locate/ecolet
Probability premium Risk aversion Downside risk Prudence Risk apportionment;
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