The General Economic Premium Principle
- 1 April 1984
- journal article
- research article
- Published by Cambridge University Press (CUP) in ASTIN Bulletin
- Vol. 14 (1) , 13-21
- https://doi.org/10.1017/s0515036100004773
Abstract
We give an extension of the Economic Premium Principle treated in Astin Bulletin, Volume 11 where only exponential utility functions were admitted. The case of arbitrary risk averse utility functions leads to similar quantitative results. The role of risk aversion in the treatment is essential. It also permits an easy proof for the existence of equilibrium.Keywords
This publication has 4 references indexed in Scilit:
- An Economic Premium PrincipleASTIN Bulletin, 1980
- Existence of equilibria in economies with infinitely many commoditiesJournal of Economic Theory, 1972
- Risk Aversion in the Small and in the LargeEconometrica, 1964
- Equilibrium in a Reinsurance MarketEconometrica, 1962