This work studies the implications of some aspects of preferences toward risk in the choice between two binary lotteries exhibiting a common consequence. The results obtained are then applied to two different problems: the choice between two risky challenges characterized by different rewards in the case of success and different probabilities of success and the choice between self-protection and self-insurance in the presence of the risk of incurring financial loss.
Some implications of common consequences in lotteries / Crainich, D.; Eeckhoudt, L.; Menegatti, M.. - In: JOURNAL OF RISK AND UNCERTAINTY. - ISSN 0895-5646. - 59:2(2019), pp. 185-202. [10.1007/s11166-019-09314-4]
Some implications of common consequences in lotteries
Menegatti M.
2019-01-01
Abstract
This work studies the implications of some aspects of preferences toward risk in the choice between two binary lotteries exhibiting a common consequence. The results obtained are then applied to two different problems: the choice between two risky challenges characterized by different rewards in the case of success and different probabilities of success and the choice between self-protection and self-insurance in the presence of the risk of incurring financial loss.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
