Article contents
A NOTE ON THE JOINT OCCURRENCE OF INSURANCE AND GAMBLING
Published online by Cambridge University Press: 16 November 2007
Abstract
This note provides a formal justification for the Friedman and Savage nonconcavity in the utility of money. This is based on the possibility of indivisibilities in the consumption possibilities set. A precise characterization of when gambling is optimal (and the optimal type) is provided in one special case. Some possible limitations are considered.
- Type
- VINTAGE ARTICLE
- Information
- Copyright
- © 2007 Cambridge University Press
References
- 3
- Cited by