On temperance and risks spreading

Christophe Courbage () and Béatrice Rey
Additional contact information
Christophe Courbage: Geneva School of Business Administration (HES-SO), Switzerland
Béatrice Rey: Univ Lyon, Université Lumière Lyon 2, GATE UMR 5824, F-69130 Ecully, France

No 1828, Working Papers from Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon

Abstract: This paper investigates the conditions for which spreading N independent and unfair risks provides the highest level of welfare than any other possible allocations of risks. It shows that such preferences do not require a higher order property than temperance. Results are also interpreted in terms of the property of superadditivity of the utility premium.

Keywords: temperance; risk spreading; superadditivity; utility premium (search for similar items in EconPapers)
JEL-codes: D81 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-upt
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Persistent link: https://EconPapers.repec.org/RePEc:gat:wpaper:1828

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