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insurance theory to departures from the expected utility hypothesis on agents' risk preferences. The areas explored consist of individual demand for co-insurance . .~and deductible insurance, the structure of Paretoefficient bilateral insurance contracts, the structure of Pareto-efficient multilateral risk-sharing agreements, and self-insurance and self-protection. Most, though not all, of the basic results in this area are found to be quite robust to dropping the expected utility hypothesis.
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insurance theory to departures from the expected utility hypothesis on agents' risk preferences. The areas explored consist of individual demand for co-insurance . .~and deductible insurance, the structure of Paretoefficient bilateral insurance contracts, the structure of Pareto-efficient multilater
Lute and Fishburn (1991) derived a general rank-dependent utility model using an operation @ of joint receipt. Their argument rested on an empirically supported property (now) called segregation and on the assumption that utility is additive over CD. This note generalizes that conclusion to the cas