Photo Olivier Renault

OLIVIER RENAULT

MAÎTRE DE CONFÉRENCES

Research interests

  • arrow_right Théorie de la décision dans le risque et l'incertain
  • arrow_right Actualisation

Research group

    Comportements, Droits et Bien-être

HAL open science

Contact

2025-44

Exploring the link between insurance behavior and trust in markets

Olivier Renault, Guibril Zerbo

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Abstract
We propose a model, called β-RDEu (Rank Dependent Expected Utility), that explains how distrust in an exchange relationship can lead to zero demand for a good or service, even when it is heavily subsidized. If an agent’s preferences, as estimated in a decontextualized environment (i.e., without distrust), are represented by a function V, then the β-RDEu function for a contract l is defined as βu(w_n) + (1 − β)V (l), and represents the agent’s preferences in a market environment where distrust may arise. The parameter β captures the agent’s level of distrust, and the wealth level wn represents an outcome excluded by the contractual relationship but considered plausible by a distrustful agent. We characterize the β-RDEu utility through a set of assumptions about preferences, and then apply the model to agricultural insurance demand. The main prediction is that agricultural insurance demand can be zero at any price if the agent is sufficiently distrustful, even though the contract provides positive net utility when assessed solely through the function V. We discuss the introduction of behavioral interventions aimed at either leveraging or reducing distrust to increase the adoption rate of agricultural insurance products. In particular, we propose a procedure to estimate the distribution of the β parameter within a population, in order to show how knowledge of this distribution can enhance the effectiveness of a subsidy.
Mot(s) clé(s)
Willingness to pay; Behavioral insurance; Distrust; Risk aversion; Zero probability distortions; Public policies
2021-17

Gestion du risque climatique : les déterminants des stratégies d’adaptation des agriculteurs en Afrique Subsaharienne

Louise Ella Desquith, Olivier Renault

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Abstract
Abstract
This article is a review of the literature on the determinants of farmers’ adaptation choice in sub-Saharan Africa. A set of studies has highlighted the existence of inequalities in adaptation at local level that suggests paying more attention to its micro determinants. Maddison (2007) emphasizes the importance of the perception of agricultural change in the adaptation process. Paradoxically, a recent literature shows that farmers have a good perception of climate change but do not really engage in adaptation strategies even when financial or institutional resources are not binding. This paradox suggests that beliefs, prone to develop in uncertain contexts, play an important role in the choice of adaptation. The specificity of the sub-Saharan households’ beliefs must be considered in policies aimed at developing adaptation.
Mot(s) clé(s)
Climate change, Adaptation, Vulnerability, perceptions, beliefs
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