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Ambiguity Increases and Insurance Deductibles


































































                 Figure 6 Determining Conditions for a General Ambiguity Increase to Decrease
                          the Optimal Deductible Level

               Note:  In Figure 6, the horizontal axis represents an α with a value between 0 and 1characterizing
                    ambiguity preference of an individual and the vertical axis represents a quadratic function
                                              *
                    Q(x q ,α) of α at any loss x q  ∈ [0,D F ].

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