Skip to Main content Skip to Navigation
Journal articles

Intensity of preferences for bivariate risk apportionment

Abstract : Bivariate risk apportionment is the preference for dispersing risks associated with two aspects of individuals’ well-being into different states of the world. In this paper, we propose an intensity measure of this preference by extending to the bivariate case the concept of marginal rate of substitution between risks of different orders introduced in the univariate case by Liu and Meyer (2013). We show that the intensity measure of the preference for bivariate risk apportionment is characterized by bivariate risk attitudes in the sense of Ross. The usefulness of our measures to understand economic choices is illustrated by the analysis of two specific decisions: savings under environmental risk and medical treatment in the presence of diagnostic risks.
Complete list of metadata

https://hal.archives-ouvertes.fr/hal-03133126
Contributor : Isabelle Celet Connect in order to contact the contributor
Submitted on : Wednesday, October 6, 2021 - 8:38:50 AM
Last modification on : Tuesday, January 4, 2022 - 5:56:30 AM
Long-term archiving on: : Friday, January 7, 2022 - 6:12:07 PM

File

Intensity of Preferences for B...
Files produced by the author(s)

Identifiers

Collections

Citation

David Crainich, Louis Eeckhoudt, Olivier Le Courtois. Intensity of preferences for bivariate risk apportionment. Journal of Mathematical Economics, Elsevier, 2020, 88, pp.153-160. ⟨10.1016/j.jmateco.2020.03.007⟩. ⟨hal-03133126⟩

Share

Metrics

Les métriques sont temporairement indisponibles