Precautionary Effort: Another Trait for Prudence
证明在Eeckhoudt等人的时间模型中，仅凭审慎就足以产生预防性努力，并放宽了损失概率凸性的假设，进一步分析了背景风险对预防性努力的影响。
This article shows that, in the temporal model of Eeckhoudt, Huang, and Tzeng ( ), prudence alone is sufficient to obtain a precautionary effort. Moreover, our conclusions relax the assumption of the convexity of loss probability. We further analyze the effect of the introduction or deterioration of background risks on precautionary effort in different settings.