Regret-based optimal insurance design
WebRegret-based optimal insurance design Insurance Mathematics and Economics WebRegret-based optimal insurance design. Yichun Chi and Sheng Chao Zhuang. Insurance: Mathematics and Economics, 2024, vol. 102, issue C, 22-41 . Abstract: In this paper, we investigate an optimal insurance design problem in which the insured's risk preference is of the regret-theoretical expected utility type and admissible insurance contracts are set to …
Regret-based optimal insurance design
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WebThis paper continues an earlier investigation into the normative implications of decision regret and looks at situations where the joint probability distribution of consequences between alternatives is not specified at the time of the decision. ... Regret-based optimal insurance design. Insurance: Mathematics and Economics, Vol. 102. WebDec 1, 2024 · With a degree of narrow framing k equal to 0.1, the optimal insurance contains two deductibles with D * = 4.68 and D ¯ * = 7.26 for low losses and high losses. For any intermediate losses between 5.05 and 7.63, a fixed indemnity equal to the premium with P = 0.37 is paid. 5. Discussions and conclusion.
WebNov 1, 2024 · Abstract. In this paper, we investigate an optimal insurance design problem in which the insured's risk preference is of the regret-theoretical expected utility type and … WebRegret-based Optimal Insurance Design Yichun Chi, Sheng Chao Zhuang In this paper, we investigate an optimal insurance design problem in which the insured's risk preference is of the regret-theoretical expected utility type and admissible insurance contracts are set to satisfy both the principle of indemnity and the incentive-compatible condition.
WebA hybrid model of optimal reinsurance: a discussion of ‘Optimal reinsurance designs based on risk measures: a review’ by Jun Cai and Yichun Chi Sheng Chao Zhuang Department of Finance, University of Nebraska-Lincoln, Lincoln, Nebraska, USA Correspondence [email protected] Webincreasing retained loss function. By comparing Mahul’s optimal insurance so-lutions with ours, it is easy to find that this constraint plays a critical role in optimal insurance design with background risk and makes the optimal solution change from disappearing deductible to the stop-loss insurance . The rest of the paper is organized as ...
WebApr 29, 2024 · Following the way of Bühlmann ( 1980 ), Chi et al. ( 2024) investigate the optimal reinsurance design under an economic premium principle π M ( Y) = E [ Y M], ∀ Y …
WebOct 1, 2024 · In this paper, we investigate an optimal insurance design problem in which the insured's risk preference is of the regret-theoretical expected utility type and admissible … clintonville arts guild holiday showWebwith regret-theoretical preferences) should choose less insurance, and when small amounts of insurance are predicted to be optimal by EUT, the regret-averse individual prefers to purchase more insurance. These results hold for insurance contracts of both the coinsurance form and deductible form, and the direction of the clintonville arts guild holiday show 2022WebDownloadable (with restrictions)! In this paper, we investigate an optimal insurance design problem in which the insured's risk preference is of the regret-theoretical expected utility … bobcat s530 skid steer specsWebNov 6, 2009 · Abstract. This paper introduces a method to measure regret theory, a popular theory of decision under uncertainty. Regret theory allows for violations of transitivity, and it may seem paradoxical to quantitatively measure an intransitive theory. We adopt the trade-off method and show that it is robust to violations of transitivity. clintonville animal hospital hoursWebA hybrid model of optimal reinsurance: a discussion of ‘Optimal reinsurance designs based on risk measures: a review’ by Jun Cai and Yichun Chi Sheng Chao Zhuang Department of … bobcat s530 specificationWebWe examine optimal insurance purchase decisions of individuals that ex-hibit behavior consistent with Regret Theory. ... Approaches based on the Savage (1954) "minimax … clintonville athletics youtubeWebJun 1, 1993 · Regret-based optimal insurance design. 2024, Insurance: Mathematics and Economics. Show abstract. In this paper, we investigate an optimal insurance design … clinton village new york