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.

Certainty equivalence (CE) and probability equivalence (PE) methods are the two most frequently used procedures for constructing von Neumann-Morgenstern utility functions. In this paper, we compare ...