Multivariate Prevention Decisions: Safe Today or Sorry Tomorrow?

Posted: 19 Dec 2011 Last revised: 16 Apr 2018

See all articles by Annette Hofmann

Annette Hofmann

Institute for Risk and Insurance - Faculty of Economics and Social Sciences

Richard Peter

University of Iowa

Date Written: December 19, 2011

Abstract

We study multivariate prevention decisions by disentangling early and late prevention. We show how the modularity of prevention and several measures of prevention efficiency interact with the agent’s risk attitude. We derive comparative statics with respect to impatience, loss severity, and income.

Keywords: prevention, decision-making under risk, intertemporal risk management

JEL Classification: D61, D81, D91

Suggested Citation

Hofmann, Annette and Peter, Richard, Multivariate Prevention Decisions: Safe Today or Sorry Tomorrow? (December 19, 2011). Economics Letters, Vol. 128, 2015, Available at SSRN: https://ssrn.com/abstract=1974495 or http://dx.doi.org/10.2139/ssrn.1974495

Annette Hofmann

Institute for Risk and Insurance - Faculty of Economics and Social Sciences ( email )

Von-Melle-Park 5
Hamburg, 20146
Germany

Richard Peter (Contact Author)

University of Iowa ( email )

341 Schaeffer Hall
Iowa City, IA 52242-1097
United States

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