Construction of the Demand Curve for Insurance Services with Expected Utility Function

Authors

  • Михаил Владимирович Рязанов St. Petersburg State University, 7–9, Universitetskaya nab., St. Petersburg, 199034, Russian Federation

Abstract

In the article, we are constructing explicit formulas showing dependence between the volume of insurance services demanded by a person with the specific utility function in the situation of risk and services price stated by the insurance company. Article considers individuals’ behaviour with the logarithmic utility function. In case of exponential and quadratic utility functions, we have developed an algorithm for constructing of demand curve.

Keywords:

demand curve, loading, coinsurance percentage, utility function

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Author Biography

Михаил Владимирович Рязанов, St. Petersburg State University, 7–9, Universitetskaya nab., St. Petersburg, 199034, Russian Federation

кандидат экономических наук, старший преподаватель

References

Литература на русском языке

Воронцовский А. В. Управление рисками: учеб. пособие. СПб., 2000.

Лобанов А. А., Чугунов А. В. Энциклопедия финансового риск-менеджмента. М., 2006.


References in Latin Alphabet

Braun M., Muermann A. The Impact of Regret on the Demand for Insurance // The Journal of Risk and Insurance. 2004. Vol. 71. N 4. P. 737–767.

Friedman M., Savage L. J. The Utility Analysis of Choices Involving Risk // The Journal of Political Economy. 1948. Vol. 56. Issue 4. P. 288.


Translation of references in Russian into English

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Published

2009-12-30

How to Cite

Рязанов, М. В. (2009). Construction of the Demand Curve for Insurance Services with Expected Utility Function. St Petersburg University Journal of Economic Studies, (4), 137–143. Retrieved from https://economicsjournal.spbu.ru/article/view/3466

Issue

No. 4 (2009)

Section

Finance, Credit, Insurance

License

Articles of the St Petersburg University Journal of Economic Studies are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.