Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/290371 
Year of Publication: 
2024
Citation: 
[Journal:] Risk Management and Insurance Review [ISSN:] 1540-6296 [Volume:] 27 [Issue:] 1 [Publisher:] Wiley [Place:] Hoboken, NJ [Year:] 2024 [Pages:] 89-114
Publisher: 
Wiley, Hoboken, NJ
Abstract: 
Three archetypical models of insurance demand based, respectively, on risk aversion, state-dependent marginal utility, and imperfectly divisible consumption are presented. These models show that the common principle underlying insurance is not always a risk transfer but meeting a conditional need. In general, insurance aligns the risk in one's financial endowment with the risk in one's financial needs. This extension of the traditional view of insurance allows simple generalizations of classic results, has implications for policy advice, and may help guiding further research.
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article
Document Version: 
Published Version

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