Findings in Actuarial Science Reported from Osaka Sangyo University (An Economic Premium Principle Under The Dual Theory Of The Smooth Ambiguity…

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Findings in Actuarial Science Reported from Osaka Sangyo University (An Economic Premium Principle Under The Dual Theory Of The Smooth Ambiguity Model)

By a News Reporter-Staff News Editor at Insurance Weekly News -- Current study results on Science - Actuarial Science have been published. According to news reporting originating in Osaka, Japan, by VerticalNews journalists, research stated, "This study considers a pure exchange economy with insurance against ambiguous loss. Ambiguity preferences are represented by the dual theory of the smooth ambiguity model from Iwaki and Osaki (2014)."

The news reporters obtained a quote from the research from Osaka Sangyo University, "The economic premium principle of Buhlmann (1980, 1984) is extended to ambiguity. We also perform some comparative statics and present sufficient conditions under which an increase in ambiguity aversion increases insurance demand and insurance premiums."

According to the news reporters, the research concluded: "Contrary to the result in Tsanakas and Christofides (2006), the optimal demand for insurance is not always comonotonic, because our model permits an economy comprising both ambiguity averse and ambiguity loving agents."

For more information on this research see: An Economic Premium Principle Under The Dual Theory Of The Smooth Ambiguity Model. Astin Bulletin, 2017;47(3):787-801. Astin Bulletin can be contacted at: Cambridge Univ Press, Edinburgh Bldg, Shaftesbury Rd, CB2 8RU Cambridge, England.

Our news correspondents report that additional information may be obtained by contacting Y. Fujii, Osaka Sangyo Univ, Fac Econ, Osaka, Japan. Additional authors for this research include H. Iwaki and Y. Osaki.

Keywords for this news article include: Osaka, Japan, Asia, Actuarial Science, Science, Osaka Sangyo University.