Available evidence on ambiguity aversion in insurance buying and selling decisions casts doubt on the validity of Expected Utility Theory

Expected Utility Theory

SubjectRisk Management

Question and Requirement:“Available evidence on ambiguity aversion in insurance buying and selling decisions casts doubt on the validity of Expected Utility Theory.”

Comment on and discuss this statement, as well as alternative theories of choice that can model decisions under ambiguity.

2000 words

 

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