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  1.  81
    Risk Vulnerability: A Graphical Interpretation.Louis Eeckhoudt & Béatrice Rey - 2011 - Theory and Decision 71 (2):227-234.
    The article gives a graphical interpretation of the concept of risk vulnerability. It shows that in a specific context of binary lotteries the assumption of risk vulnerability adds to prudence what the assumption of decreasing absolute risk aversion adds to risk aversion. We end the presentation showing that results can be extended to the concept of multiplicative risk vulnerability.
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  2.  31
    Benchmark Values for Higher Order Coefficients of Relative Risk Aversion.Michel Denuit & Béatrice Rey - 2014 - Theory and Decision 76 (1):81-94.
    The existing literature on savings, insurance, and portfolio choices under risk has revealed that quite often comparative statics results depend, among other things, upon the values of the coefficients of relative risk aversion and relative prudence. More specifically the benchmark values for these coefficients are, respectively, one and two. Recently, several papers investigated constraints on the higher degree extensions of the coefficients of relative risk aversion and of relative prudence. The present work provides a unified approach to this question based (...)
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  3.  49
    A Note on Optimal Insurance in the Presence of a Nonpecuniary Background Risk.Béatrice Rey - 2003 - Theory and Decision 54 (1):73-83.
    This note examines the theory of optimal insurance purchasing in the presence of a nonpecuniary background risk. The occurrence of the qualitative uninsurable background loss can increase, decrease or can leave the marginal utility of wealth unchanged, whereas a financial background loss (as in Doherty and Schlesinger, 1883a) always increases it. Existing theorems on the optimal level of insurance and the optimal form of insurance contracts are shown to hold only under restrictive assumptions on the correlation level between risks. The (...)
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  4.  4
    On Temperance and Risk Spreading.Christophe Courbage & Béatrice Rey - 2020 - Theory and Decision 88 (4):527-539.
    This paper shows that temperance is the highest order risk preference condition for which spreading N independent and unfair risks provides the highest level of welfare than any other possible allocations of risks. These results are also interpreted through the concept of N-superadditivity of the utility premium. This paper provides a novel application of temperance, not in terms of two risks as it is common, but in terms of N risks.
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  5.  43
    Total and Partial Bivariate Risk Premia: An Extension.Béatrice Rey - 2003 - Theory and Decision 55 (1):59-69.
    This paper investigates the link between the total bivariate risk premium and the sum of partial bivariate risk premia. Whereas in the case of small risks, the non interaction between risks is a sufficient condition to obtain the equality between the total risk premium and the sum of partial risk premia, the paper shows that this condition is not sufficient for large risks. The non interaction between risks occurs in two cases: if risks are independent or if individual's marginal utility (...)
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