The Optimal Insurance Policy for the General Fixed Cost of Handling an Indemnity under Rank-Dependent Expected Utility
Based on Bernard et al.’s research, we focus on the Pareto optimal insurance design with the insured’s Rank-Dependent Expected Utility (RDEU). Compared with their previous work, our novelties are the more general fixed cost function of the insurer and the discussion of adverse selection and moral ha...
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| Format: | Article |
| Language: | English |
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Hindawi Limited
2015-01-01
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| Series: | Journal of Applied Mathematics |
| Online Access: | http://dx.doi.org/10.1155/2015/186061 |