Quotation Kremslehner, Robert, Mürmann, Alexander. 2009. State-Dependent Preferences and Insurance Demand. Seminar of the European Group of Risk and Insurance Economists 2009, Bergen, Norwegen, 21.09.-23.09..




We compare the demand for insurance under state-dependent and state-independent preferences when allowing for positive premium loading and continuous state space. We show that monotonicity of marginal utility across states is not sufficient to yield unambiguous comparative results--as it is under a fair premium. Nevertheless, unambiguous results can be derived for a specified set of state-independent preferences if both marginal utility and absolute degree of risk aversion are monotonic across states.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title State-Dependent Preferences and Insurance Demand
Event Seminar of the European Group of Risk and Insurance Economists 2009
Year 2009
Date 21.09.-23.09.
Country Norway
Location Bergen


Kremslehner, Robert (Former researcher)
Mürmann, Alexander (Details)
Institute for Risk Management and Insurance IN (Former organization)
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