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    • Publications (2)
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  1. Publication

    Insurance Demand under Prospect Theory: A Graphical Analysis

    01.03.2012

    This paper analyzes insurance demand under prospect theory in a simple model with two states of the world and fair insurance contracts. We argue that two different reference points are reasonable in this framework, state-dependent initial wealth or...

  2. Publication

    Insurance Demand and Prospect Theory

    01.01.2012

    Empirical evidence has shown that people are unwilling to insure rare losses at subsidized premiums and at the same time take-up insurance for moderate risks at highly loaded premiums. This paper explores whether prospect theory, in particular...

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