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Conjectural variations, risk aversion and price-cost margins

✍ Scribed by Pekka Ilmakunnas

Book ID: 112505547
Publisher: Springer Vienna
Year: 1985
Tongue: English
Weight: 403 KB
Volume: 45
Category: Article
ISSN: 1617-7134
DOI: 10.1007/bf01283156

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## Abstract This paper discusses why, in a medical context, the standard assumption of a risk‐neutral social planner is inappropriate and develops a framework for conducting cost‐effectiveness (CE) analysis when social planners are risk‐averse. This framework demonstrates that if new medical interv