​
wealth surviving bankruptcy
1
initial wealth
10
no lawsuit probability
0.9
risk aversion
-0.8
dataset
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
outcomes for lawsuit A
outcomes for lawsuit B
0
2
4
6
8
10
12
dual limits
single limit
0.0
0.2
0.4
0.6
0.8
1.0
limit
0.0
0.2
0.4
0.6
0.8
1.0
$
optimal policy
single limit
cost of accidents
13.1214
10--1.InterpolatingPolynomial
1-1.5cos
2
(w)+
1
100

2+
π
sin(9)-
9
4
+π
3/2
sin(9)-
9
4

3
1.33333cos
2
(w)+
1
100
+1
1
1+πsin(9)-
9
4

2
+π
2
sin(9)-
9
4

4
1
2+
π
sin(9)-
9
4
+π
3/2
sin(9)-
9
4

3
1+πsin(9)-
9
4

2
+π
2
sin(9)-
9
4

4
〚3〛
,
0
1
1
0
[-0.8,9.62456,1,0]+1.14871.InterpolatingPolynomial
1-1.5cos
2
(w)+
1
100

2+
π
sin(9)-
9
4
+π
3/2
sin(9)-
9
4

3
1.33333cos
2
(w)+
1
100
+1
1
1+πsin(9)-
9
4

2
+π
2
sin(9)-
9
4

4
1
2+
π
sin(9)-
9
4
+π
3/2
sin(9)-
9
4

3
1+πsin(9)-
9
4

2
+π
2
sin(9)-
9
4

4
〚3〛
,
0
1
1
0
[-0.8,9.62456,1,0]-1+2
5.