In this paper, we show that ambiguity aversion always raises the demand for self-insurance and the insurance overage, but may decrease the demand for self-protection. We also characterize the optimal insurance design under ambiguity aversion, and exhibit a case in which the straight deductible contract is optimal as in the expected utility model.
No takes yet. Share an insight, caveat, or question.
Alary et al. (2013) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: