Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. In economics, demand is the consumer's ...

This paper presents first the choice of the optimal insurance policy under a state-dependent utility function (S.D.U.F.) when the probabilities of loss are dependent on the actions of the insured.

The results generated by experimentalists in psychology and economics have led to numerous advances in the study of human decision making under risk. Camerer (1995) and Rabin (1998) provide excellent ...