Assume that P and A each have decreasing absolute risk aversion, with utility of income functions u  (x  y  dP ) kP, v  (y  dA) kA where di 0, ki  (0, 1), i  P, A. Analyse the form of the f.i.f.b....

Assume that P and A each have decreasing absolute risk aversion, with utility of income functions u  (x  y  dP ) kP, v  (y  dA) kA where di 0, ki  (0, 1), i  P, A. Analyse the form of the f.i.f.b. payment function y*(x).