Laury, Susan K.; McInnes, Melayne Morgan; Swarthout, J. Todd - Department of Economics, Andrew Young School of Policy … - 2008
It is widely accepted that individuals tend to underinsure against low-probability, high-loss events relative to high-probability, low-loss events. This conventional wisdom is based largely on field studies, as there is very little experimental evidence. We reexamine this issue with an...