If individuals are risk averse, why do they care more about large losses-that is, why are they

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If individuals are risk averse, why do they care more about large losses-that is, why are they willing to pay a larger amount in excess of the actuarial value of the losses for insurance ? What does this imply for the design of social insurance ?

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Economics Of The Public Sector

ISBN: 9780393925227

4th Edition

Authors: Joseph E. Stiglitz, Jay K. Rosengard

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Question Posted: Oct 19, 2023 02:41 AM

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If individuals are risk averse, why do they care more about large losses-that is, why are they

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Individuals are often more riskaverse when it comes to large losses because the impact of such ...View the full answer

Economics Of The Public Sector

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