A theory of insurance and gambling

• Verfasst von: Nyman, John A. [VerfasserIn]
• Titel: A theory of insurance and gambling
• Titelzusatz: replacing risk preferences with quid pro quo
• Verf.angabe: John A. Nyman
• Verlagsort: New York, NY
• Verlag: Oxford University Press
• Jahr: 2024
• Umfang: 1 Online-Ressource (x, 262 Seiten)
• Illustrationen: Illustrationen
• Gesamttitel/Reihe: Oxford scholarship online
• Fussnoten: Also issued in print: 2024. - Includes bibliographical references and index. - Description based on online resource and publisher information; title from PDF title page (viewed on November 27, 2023)
• ISBN: 978-0-19-768795-6
• DOI: doi:10.1093/oso/9780197687925.001.0001
• Datenträger: Online-Ressource
• Sprache: eng
• Bibliogr. Hinweis: Erscheint auch als : Druck-Ausgabe: Nyman, John A., 1947 - : A theory of insurance and gambling. - New York, NY, United States of America : Oxford University Press, 2024. - x, 262 Seiten
• Sach-SW: Society
• Sach-SW: Insurance & actuarial studies
• K10plus-PPN: 1884514081
• K10plus-PPN:
  Universitätsbibliothek
• Lokale URL UB: Zum Volltext

Abstract

In 1948, Milton Friedman and L.J. Savage suggested that risk preferences explain the demand for insurance & gambling - a theory that is still almost universally accepted by economists today. If you were to ask almost any economist why people purchase insurance, they would say it is because most people are "risk averse," or equivalently, "prefer certainty of losses." If asked to explain why people gamble, they would say it is because some people are "risk seekers." In this book, John A. Nyman critiques this approach & proposes a new theory of the motivations for insurance & gambling. He argues that demand for insurance & gambling is best understood by focusing not on risk preferences, but on the income transfer, the states of the world that trigger the income transfer, & the value of the income in those states.