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More On Insurance, Protection And Risk

Author

Listed:
  • BOYER, M.
  • DIONNE, G.

Abstract

In a Previous Article (1983), We Indicated That Three Factors Affect the Individual's Choice of Self-Protection Activities, Self-Insurance Activities and Market Insurance: 1- Their Efficiency in Reducing Expected Loss 2- Their Relative Cost 3- and Their Relative Impact on Risk We Proposed a Methodology to Analyse the 'Risk Factor' Involved in Those Choices. Our Results Were Criticized by Chang and Ehrlich (1985). the Object of This Paper Is to Show That the Analyses in Both Articles Are Complementary Instead of Being Conflicting. the Main Difference Between Our Article and Chang and Ehrlich's Article Is That We Focussed Our Analysis on Isolating the Risk Factor by Controlling for the Other Factors While Chang and Ehrlich Did Not Isolate Explicitly Any Factor in Their Analysis of the Relationships Between Self-Insurance Self-Protection and Market Insurance As Chosen by a Risk Averse Individual.
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Suggested Citation

  • Boyer, M. & Dionne, G., 1988. "More On Insurance, Protection And Risk," Cahiers de recherche 8806, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  • Handle: RePEc:mtl:montec:8806
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    Cited by:

    1. Machina, Mark J, 2001. "Payoff Kinks in Preferences over Lotteries," Journal of Risk and Uncertainty, Springer, vol. 23(3), pages 207-260, November.
    2. Dionne, Georges & Harrington, Scott, 2017. "Insurance and Insurance Markets," Working Papers 17-2, HEC Montreal, Canada Research Chair in Risk Management.
    3. Henri Loubergé, 1998. "Risk and Insurance Economics 25 Years After," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 23(4), pages 540-567, October.
    4. Courbage, Christophe & Rey, Béatrice & Treich, Nicolas, 2013. "Prevention and precaution," TSE Working Papers 13-445, Toulouse School of Economics (TSE).
    5. Christophe Courbage & Béatrice Rey, 2006. "Prudence and optimal prevention for health risks," Health Economics, John Wiley & Sons, Ltd., vol. 15(12), pages 1323-1327, December.

    More about this item

    Keywords

    insurance ; risk ; market;
    All these keywords.

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