Courbage, Christophe; Rey, Béatrice; Treich, Nicolas - Toulouse School of Economics (TSE) - 2013
This chapter surveys the economic literature on prevention and precaution. Prevention refers as either a self-protection activity – i.e. a reduction in the probability of a loss – or a self-insurance activity – i.e. a reduction of the loss –. Precaution is defined as a prudent and...