Probabilistic Insurance

Research, Preprint, Article English OPEN
Wakker, Peter; Thaler, Richard; Tversky, Amos;
  • Publisher: Microeconomics
  • Subject: decision making;insurance;probability | decision making; insurance; probability
    • jel: jel:D81

textabstractProbabilistic insurance is an insurance policy involving a small probability that the consumer will not be reimbursed. Survey data suggest that people dislike probabilistic insurance and demand more than a 20% reduction in the premium to compensate for a 1% ... View more
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