Monotonicity of optimal decisions: an insurance demand example

Monotonicity of optimal decisions: an insurance demand example

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Article ID: iaor200920
Country: Germany
Volume: 4
Issue: 2/3
Start Page Number: 187
End Page Number: 198
Publication Date: Jan 1996
Journal: Central European Journal of Operations Research
Authors:
Keywords: risk
Abstract:

In this paper optimal decisions are considered with respect to a bivariate random variable (X, Y). Whereas the random variable X can be controlled by the decision maker the random variable Y is controlled exogenously. We are interested in the reaction with respect to the controlled variable to variations of the exogenous variable. Monotonicity properties are derived within the theory of insurance demand.

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