‘Unlikeliness’ of Physical Risks
As suggested in the introduction, the ’unlikeliness-problem’ of EUA is closely related to the ‘Allaisparadox’, ‘certainty effect’, and (as it will be demonstrated later) to a so-called Zeckhauser-paradox, which is particularly relevant for physical risks. In order to clarify the discussion, this chapter will start with a brief review of EUA.
KeywordsIncome Expense Defend Stake Weinstein
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