Prevention in two‐period time and its extension health risk model

Abstract

The optimal problem exists in the individual's self‐protection activity. Generally, people consider a two‐period model within the decision equation through some constraints. In this work, we extend the two‐period model in risk decision‐making to a ‐period model with . Prevention and saving are two main factors discussed in this model. Then we apply the coordinate descent algorithm to find the “optimal” solution of the model equation. To the best knowledge we know, it is the first time to give the approximation of the optimality from a theoretical view. Some substitution results based on the first derivative are also presented. The numerical examples are tested to verify the result.