liu.seSearch for publications in DiVA
Change search
ReferencesLink to record
Permanent link

Direct link
Choices at various levels of uncertainty: An experimental test of the restated diversification theorem
Centre for Labour Market Policy Research (CAFO), School of Management and Economics, Växjö University Sweden.ORCID iD: 0000-0002-1798-8284
Linköping University, Department of Management and Engineering, Economics. Linköping University, Faculty of Arts and Sciences.
2006 (English)In: Journal of Risk and Uncertainty, ISSN 0895-5646, E-ISSN 1573-0476, Vol. 33, no 3, 183-196 p.Article in journal (Refereed) Published
Abstract [en]

Our "Restated diversification theorem" (Skogh and Wu, 2005) says that risk-averse agents may pool risks efficiently without assignment of subjective probabilities to outcomes, also at genuine uncertainty. It suffices that the agents presume that they face equal risks. Here, the theorem is tested in an experiment where the probability of loss, and the information about this probability, varies. The result supports our theorem. Moreover, it tentatively supports an evolutionary theory of the insurance industry-starting with mutual pooling at uncertainty, turning into insurance priced ex ante when actuarial information is available. © Springer Science + Business Media, LLC 2006.

Place, publisher, year, edition, pages
Springer Science+Business Media B.V., 2006. Vol. 33, no 3, 183-196 p.
Keyword [en]
Loss sharing . Insurance . Risk . Ambiguity . Uncertainty . Experiment
National Category
Engineering and Technology
URN: urn:nbn:se:liu:diva-43412DOI: 10.1007/s11166-006-0332-0Local ID: 73771OAI: diva2:264271
Available from: 2009-10-10 Created: 2009-10-10 Last updated: 2015-03-06

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Ahmed, Ali M.Skogh, Göran
By organisation
EconomicsFaculty of Arts and Sciences
In the same journal
Journal of Risk and Uncertainty
Engineering and Technology

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 58 hits
ReferencesLink to record
Permanent link

Direct link