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Ambiguity Increases and Insurance Deductibles

Figure 2 Examples of the Optimal Indemnity in the Presence of Ambiguity under
Risk- and Ambiguity-Aversion

Note: In Panel A of Figure 2, the horizontal axis represents a discrete loss x taking a value in the set
{0,1,2,3,4,5} and the vertical axis represents the cumulative loss probability at each value of x.
In Panel B of Figure 2, the horizontal axis represents the discrete loss x and the vertical axis
represents the optimal indemnity under the loss distributions in Panel A.

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