This experimental study investigates insurance decisions in low-probability, high-loss risk situations. Results indicate that subjects consider the probability of loss (loss size) when they make buying decisions (paying decisions). Most individuals are risk averse with no specific threshold...

This paper investigates the effects of earthquake risk perceptions and a number of socioeconomic variables on risk mitigation. The effects of perceived risk components (probability and severity) and perceived risk characteristics (dread, knowledge, controllability, and responsibility) are...