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http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/2132 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/2132 http://eprints.org/relation/isCoversheetVersionOf https://pure.iiasa.ac.at/id/document/2132 archive 351 disk0/00/00/21/05 2016-01-15 01:52:26 2021-08-27 17:11:08 2016-01-15 01:52:26 monograph show 2 Kunreuther H.C. AL1609 Sanderson W.C. 1631 Vetschera R. 941 pub iis_ecn prog_mmt This paper provides analysts with an alternative way of thinking about insurance purchase behavior that may be more natural than the traditional approach which assumes that people purchase specific contingent claims. In our formulation individuals are assumed to insure themselves against specific amounts of coverage which will protect them from a series of different states of nature where losses fall within a specific range. Insurance firms tend to market coverage in this manner: they offer $x worth of protection or $y deductible against a class of different events and set their premiums accordingly. Here we investigate the implications on consumer choice of a convex utility or value function. The same conceptual framework can be utilized to characterize behavior if the utility or value function is concave in the loss domain. 1982-04 published CP-82-013 CP-82-013 2572 265 1641 public collaborative_paper IIASA, Laxenburg, Austria 13 FALSE info:eu-repo/semantics/book