A Mean-Variance Portfolio Analysis of the Demand and Supply of a Potentially Infectious Service
AbstractA health-risking illegal personal service is transacted when the expected extra satisfaction rate exceeds the ratio of the expected extra cost to the legal service price. Its prevalence decreases with the costs of risk bearing for the providers and clients. Law-enforcement effort lowers (raises) the equilibrium price of the illegal and hazardous service when the ratio of the providers’ and the clients’ degrees of absolute risk aversion is greater (smaller) than the ratio of the law-enforcement elasticities of their cost bearing.
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Bibliographic InfoPaper provided by School of Economics, University of Wollongong, NSW, Australia in its series Economics Working Papers with number wp07-02.
Length: 13 pages
Date of creation: 2007
Date of revision:
Contact details of provider:
Postal: School of Economics, University of Wollongong, Northfields Avenue, Wollongong NSW 2522 Australia
Phone: +612 4221-3659
Fax: +612 4221-3725
Web page: http://business.uow.edu.au/econ/index.html
More information through EDIRC
Unsafe service; Health risk; Legal risk; Law enforcement;
Find related papers by JEL classification:
- D4 - Microeconomics - - Market Structure and Pricing
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- I1 - Health, Education, and Welfare - - Health
- K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-07-20 (All new papers)
- NEP-HEA-2007-07-20 (Health Economics)
- NEP-IAS-2007-07-20 (Insurance Economics)
- NEP-LAW-2007-07-20 (Law & Economics)
- NEP-REG-2007-07-20 (Regulation)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Levy, A., 2000.
"A Lifetime Portfolio of Risky and Risk-Free Sexual Behaviour and the Prevalence of AIDS,"
Economics Working Papers
wp01-04, School of Economics, University of Wollongong, NSW, Australia.
- Levy, Amnon, 2002. "A lifetime portfolio of risky and risk-free sexual behaviour and the prevalence of AIDS," Journal of Health Economics, Elsevier, vol. 21(6), pages 993-1007, November.
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