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Ambiguity Increases and Insurance Deductibles
Appendix C: Settings of the Specific Ambiguity Increase in Definition 3 and
Appendix C: Settings of the Specific Ambiguity Increase in Definition 3 and
the Sp
App
the Sp
f
inition 3 and
ecific
u
ix
Appendix C: Settings of the Specific Ambiguity Increase in Definition 3 and Definition 3 and
App e nd ix C: S etti e ng s o f C: S etti ng s o Ambig u ecific crea s e in ity In crea s e in
ity In
Ambig
nd
Def
Proposition 4
Proposition 4
Pr oposition 4
Proposition 4 Proposition 4
The following table details the settings used to demonstrate the example in Definition 3 and
The following table details the settings used to demonstrate the example in Definition 3 and
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The following table details the settings used to demonstrate the example in Definition 3 and in Definition 3 and
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Proposition 4. w i n g t a b T l h e d e o t a l l i o w t i h n e g s t e a t b t i l n e Proposition 4. t t o n n g s t s r a u t s e e d t h t e ex e amp n l e t r in t e D t ef e ex i o n 3 l and
Pr oposi t i on 4. Proposition 4.
Proposition 4.
Table 1 Settings of the Specific Ambiguity Increase in Definition 3 and Proposition 4
Table 1 Settings of the Specific Ambiguity Increase in Definition 3 and Proposition 4
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A
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ase
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itio
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Ta bl e 1 S e ttin gs of bl e 1 ec e ifi c gs mbig h u i t Sp I ec ifi c ase mbig u f i i t y it I io n 3 an d Pr op f o n s it io n 3
re
Table 1 Settings of the Specific Ambiguity Increase in Definition 3 and Proposition 4 and Proposition 4
of
Ta
y
0
Loss (x) Loss (x) 1 2 3 0 4 1 2 3 4
Loss (x) Distribution used by the
L Panel (A: Loss (x) Panel 0 0 A: Distribution used by the 1 3 3 2 4 4 3 4
1 1
ss
o
x
0
)
2 2
insurer Panel A: D istri b u insurer
Panel A: Distribution used by the tion used by the
Panel A: Distribution used by the
insure ) insurer ) 0.9100 0.9300 0.9600 0.4100 0.9100 0.9300 0.9600 1.0000
1.0000
0.4100
∗
∗
insurer r
0.
410
0.9300 0.9100
0.9600 0.9300
)
Panel B:
1.
) Distribution used by the Panel B: 0 0 . 9 100 0. 930 0 0 . 9 600 1.0000 0.9600 1.0000
0
000
0.4100 Distribution used
0.9100 0.4100 by the
∗
∗ ∗
)
D
individual
Panel B: Distribution used by the ibution used by the
ibuti
Panel
B:
the
Panel
r
by
D
ist
ist
used
B:
r
on
individual
vid
al
u
ndi
i Before the individual Before the specific ambiguity increase: ∆F
individual specific ambiguity increase: ∆F
1.0000
) B e f ore t h e s p ec i f i c a 0.4070 0.9100 0.9285 0.9600 0.4070 0.9100 0.9285 0.9600 1.0000
Before the specific ambiguity increase: ∆F ∆F )
Before the specific ambiguity increase:mbiguity increase: ∆F
�
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9
) ) ) ) 0.413 0 0 0.9100 0. 0.9315 0 0.9 600 0.4130 0 0.9100 1.0000 0.9600 1.0000
0.9285 0.9100 600
9
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.
5
100
928
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1.0000 0.9600
0.9100 0.4070
4070
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1. 1.0000
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0.4130
100
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931
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000
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600
9
0.
0.9100 0.4130
.
0
0
1.
1.0000 0.9600
413
0
After the specific ambiguity
5
) ) ) increase: ∆T After the specific ambiguity increase: 0.9600 0.9315 0 1.0000
0.9315 0.9100 ∆T
�
� �
1.0000
)
After the specific ambiguity increase:mbiguity increase: ∆T 0.9100 0.9285 0.9595 0.4070 0.9100 0.9285 0.9595 1.0000
0.4070
After the specific ambiguity increase: ∆T ∆T )
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1.0000 0.9595
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After the nonspecific ambiguity increase:
) ) After the nonspecific ambiguity increase: 1. 1.0000 0.9605 1.0000
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0
0.
5
)
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∆K Aft e r the no nspecifi c am
After the nonspecific ambiguity increase: ∆K
After the nonspecific ambiguity increase: biguity increase:
0.4070
1.0000
∆K ) ∆K ) 0.9100 0.9285 0.9595 0.4070 0.9100 0.9285 0.9595 1.0000
∆K
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Panel C: Conditions of Proposition 4 Panel C: Condit .ions of Proposition 4 1.0000 1.0000
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C: Con
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Panel C: Conditions of Proposition 4ns of Proposition 4
Panel
Before vs. aft
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C: Coner: ∆F vs. ∆T
Before vs. after: ∆F vs. ∆T
0.0000
0.0000
ore v
. aft
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ef
Before vs. after: ∆F vs. ∆T s. after: ∆F vs. ∆T (1) � � − � � 0.0000 -0.0005 0.0000 0.0000 0.0000 -0.0005 0.0000
0.0000
ef
B
ore v
vs.
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e
B (1) � � − � �
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∆T
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0
0.0000 0.0000
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Before vs. after: ∆F Before vs
Before vs. after: ∆F vs. ∆K vs. ∆K . after: ∆F vs. ∆K (1) ) − )
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0 0.0000
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34
