You've seen that the consumer's degree of risk aversion doesn't affect the quantity of actuarially fair insurance

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You've seen that the consumer's degree of risk aversion doesn't affect the quantity of actuarially fair insurance purchased (since all risk-averse consumers will fully insure). Using graphs, show that the degree of risk aversion does affect the value of fair insurance. Is the value of fair insurance smaller or larger to a more risk-averse consumer?
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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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